Indian REITs Association dismisses Hindenburg claims as 'baseless and misleading'

REITs Association refutes: The Indian REITs Association has firmly rebutted allegations made by Hindenburg Research, which claimed that the regulatory framework for Real Estate Investment Trusts (REITs) set by the Securities and Exchange Board of India (Sebi) favours a select few. The association described these claims as "baseless and misleading."

The association praised Sebi for establishing a "robust regulatory environment" that includes thorough reporting requirements, mandatory independent valuations, and stringent governance standards. These measures are intended to boost transparency and safeguard investor interests.

Sebi’s REIT amendments defended

The controversy erupted following a Hindenburg report that accused Sebi of amending its REIT Regulations 2014 to benefit a specific multinational financial group. In response, Sebi confirmed that its REIT regulations have been updated periodically since their inception.

The Indian REITs Association highlighted that since the REIT regulations were introduced in 2014, India has developed a strong regulatory framework that meets international standards. This framework, created with input from market participants, ensures comprehensive protection for both domestic and international investors.

Buch denies offshore allegations

Hindenburg Research had also targeted Sebi Chairperson Madhabi Puri Buch, alleging that she and her husband were involved in questionable offshore funds linked to the Adani money siphoning scandal. Both Buch and her husband Dhaval, a senior advisor at Blackstone, have denied these allegations, calling them unfounded and asserting that their financial dealings are transparent.

The Adani Group dismissed the latest allegations as malicious and based on selective information. The company reiterated that it has no business connections with Sebi Chairperson Buch or her husband.

REITs enhance market transparency

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, stressed that the sector's expansion has attracted substantial global institutional investment. 

This participation enhances the credibility and reliability of India’s financial system, offering a transparent investment channel in the growing real estate market.

Currently, four REITs are listed on Indian stock exchanges, managing assets worth over Rs 1.4 lakh crore and serving more than 2.4 lakh crore unitholders. These REITs have distributed over Rs 18,000 crore in returns, with the asset class’s market capitalisation reaching approximately Rs 80,000 crore.

(With PTI Inputs)