At a recent Confederation of Indian Industry (CII) event, Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch abstained from discussing Real Estate Investment Trusts (REITs).

“There are regulations simplifying REITs. But today if I utter the word REIT, I am accused of conflict of interest. I will abstain from talking on REITs,” she said.

This remark seems like a pushback on recent allegations against her.

The accusations emerged last month when short-seller Hindenburg Research raised concerns about Buch’s connections to offshore funds associated with the Adani Group.

Hindenburg alleged that Buch and her husband had undisclosed investments in offshore entities, which they claimed were used for round-tripping and inflating stock prices.

Buch dismissed these allegations as “baseless” and an attempt at “character assassination.”

In addition to these concerns, the Congress Party on Monday (September 2) raised questions regarding Buch’s income from ICICI Bank and ICICI Prudential.

Senior Congress leader Pawan Khera claimed that Buch received ₹16.80 crore from these entities and ESOPs while serving as a SEBI member.

The party alleged that Buch drew regular income from ICICI Bank between 2017 and 2024 and received ₹2.17 lakh from ICICI Prudential in 2021-22. The ESOPs reportedly began at ₹2.66 crore, with TDS provided by the bank.

Role of compliance

During her address at the CII event on September 2, Buch emphasised the role of compliance in protecting consumers and fostering trust in the financial system.

She noted, “The role of compliance is to protect the consumer or investor. Compliance is important as it fosters trust in the system.”

Buch highlighted that the industry’s response to small and medium REITs had been very positive.

Adoption of new technologies

Buch also spoke on the adoption of technology and the evolution of India’s financial markets.

She said, “Today, the cost of onboarding and servicing is really low in India. The minimum ticket size of mutual fund investment today is about $3; we don’t even get a Starbucks at that price in other countries.”

Buch observed that India’s asset classes are expanding beyond the traditional few, with new products and asset classes being developed to meet diverse needs.

“Gone are the days when India only had 2-3 asset classes,” she said.

She outlined SEBI’s commitment to working closely with the industry to manage increasing complexities, including conducting extensive consultations for sensible regulatory measures.

She also anticipated the implementation of a single filing of disclosures in the near future.