New Delhi, August 13th: The Indian REITs Association has firmly rejected allegations made by US-based short seller Hindenburg Research, which claimed that recent amendments to SEBI’s REIT regulations were designed to favour a select few. The association has labelled these claims as “baseless and misleading,” asserting that the regulatory framework established by SEBI is robust, transparent, and in line with global best practices.
Since the introduction of the REIT (Real Estate Investment Trust) regulations in 2014, India has developed a strong regulatory environment, praised for its comprehensive reporting requirements, mandatory independent valuations, and stringent governance standards. According to the Indian REITs Association, these measures are crucial for enhancing transparency and protecting investor interests, particularly for domestic and international institutional investors, as well as, retail participants.
The controversy arose after a report by Hindenburg Research accused SEBI of making amendments to the REIT regulations to benefit a specific multinational financial conglomerate. In response, SEBI emphasized that the REIT regulations have been periodically updated to reflect the evolving needs of the market. The Indian REITs Association echoed this sentiment, commending SEBI and its leadership for fostering an environment that aligns with international standards and ensures high levels of investor protection.
The report from Hindenburg also launched broader allegations against SEBI chairperson Madhabi Puri Buch, linking her and her husband, Dhaval Buch, to offshore funds involved in the alleged Adani money siphoning scandal. Both Madhabi Puri Buch and her husband have denied these accusations, calling them baseless and asserting that their financial dealings are transparent and publicly documented. The Adani Group, also implicated by Hindenburg, dismissed the allegations as manipulative and malicious, stating there is no commercial relationship with the SEBI chairperson or her husband.
The Indian REITs Association, which includes prominent members such as Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust, highlighted the sector’s growth and the increasing interest from global institutional investors. The association noted that the participation of these investors strengthens trust in India’s financial system and provides a reliable avenue for engaging in the country’s expanding real estate market.
Currently, there are four listed REITs on Indian stock exchanges, collectively managing assets worth over ₹1.4 lakh crore and serving more than 2.4 lakh unitholders. These REITs have distributed over ₹18,000 crore, with the market capitalization of the asset class reaching approximately ₹80,000 crore. The Indian REITs Association asserts that the sector’s growth and the trust it has garnered are testaments to the effectiveness of SEBI’s regulatory framework, contrary to the allegations posed by Hindenburg Research.
