SEBI Chief Refrains from Commenting on Real Estate Investment Trusts Amid Conflict of Interest Allegations

SEBI Chief Refrains from Commenting on Real Estate Investment Trusts Amid Conflict of Interest Allegations

SEBI Chief Refrains from Commenting on Real Estate Investment Trusts Amid Conflict of Interest Allegations

SEBI Chief Madhabi Puri Buch chose not to comment on Real Estate Investment Trusts (REITs) during an event organized by CII on Monday, citing potential conflict of interest concerns. This decision comes in the wake of allegations raised by US short-seller Hindenburg Research, accusing Buch of a conflict due to her husband's advisory role with private equity firm Blackstone, a significant player in the REIT sector. Both Buch and her husband, Dhaval Buch, have denied the allegations.

The controversy intensified with accusations that recent amendments to REIT regulations by SEBI favored a specific financial conglomerate, claims that the regulator has strongly denied. "If I utter the word REITs, I am accused of conflict of interest," Buch said at the event, emphasizing her reluctance to comment further.

REITs, relatively new to the Indian market but popular globally, offer investors access to a portfolio of commercial real estate assets, most of which are leased out, providing returns and capital appreciation. Despite the controversy, REITs remain a growing investment vehicle in India, especially with SEBI's recent implementation of regulations for small and medium REITs (SM REITs) to promote fractional ownership in real estate.

In a separate development, the Congress raised new conflict of interest allegations against Buch, urging Prime Minister Narendra Modi to address the issue as head of the appointments committee. They claim Buch has been receiving income from ICICI Bank while serving as SEBI Chairperson since 2017. SEBI has not responded to these allegations.

Despite the ongoing debate, SEBI has reported positive feedback from the industry regarding regulations on small and medium REITs, which are expected to increase investor participation in the real estate sector.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/