Hindenburg Report Alleges Conflict of Interest Between SEBI Chairperson and Blackstone's REITs in India
Hindenburg Research raises questions about a potential conflict of interest involving SEBI Chairperson Madhabi Buch and Blackstone, a major private equity firm, in relation to Real Estate Investment Trusts (REITs) in India.
SebiBlackstoneReitsConflict Of InterestHindenburg ResearchReal Estate NewsAug 11, 2024
According to the report, Dhaval Buch, the husband of SEBI Chairperson Madhabi Buch, has a background in procurement and supply chain management, having worked at Unilever for most of his career. However, despite lacking experience in real estate or capital markets, he joined Blackstone as a Senior Advisor in July 2019.
The report also points out that Blackstone has been a major investor and sponsor of REITs in India, including Mindspace and Nexus Select Trust, which received SEBI approval for public IPOs during Dhaval Buch's tenure as a senior advisor. Furthermore, the report suggests that India's first-ever REIT, Embassy, sponsored by Blackstone, received SEBI approval and went public just three months before Dhaval Buch joined Blackstone.
The report alleges that SEBI has proposed and implemented several REIT regulation changes during Dhaval Buch's time as an advisor to Blackstone, which have significantly benefited the firm. Since Madhabi Buch became Chairperson in March 2022, SEBI has proposed and implemented several REIT legislation changes, which have also benefited Blackstone.
Dhaval Buch and Madhabi Puri Buch have responded to the Hindenburg report, calling it
Frequently Asked Questions
What is the alleged conflict of interest between SEBI Chairperson Madhabi Buch and Blackstone?
The alleged conflict of interest relates to the possible connections between Madhabi Buch and Blackstone, particularly in relation to the firm's involvement with Real Estate Investment Trusts (REITs) in India.
What is the background of Dhaval Buch, the husband of SEBI Chairperson Madhabi Buch?
Dhaval Buch has a background in procurement and supply chain management, having worked at Unilever for most of his career.
What is the significance of Blackstone's involvement with REITs in India?
Blackstone has been a major investor and sponsor of REITs in India, including Mindspace and Nexus Select Trust, which received SEBI approval for public IPOs during Dhaval Buch's tenure as a senior advisor.
How has SEBI responded to the allegations of conflict of interest?
SEBI has not officially responded to the allegations, but Dhaval Buch and Madhabi Puri Buch have issued a joint statement calling the allegations 'baseless' and accusing Hindenburg Research of attempting 'character assassination.'
What are the implications of the alleged conflict of interest for the Indian securities market?
The alleged conflict of interest has sparked controversy and raised questions about the independence and impartiality of SEBI, which is the primary regulator of the securities market in India.
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