The Securities and Exchange Board of India (SEBI) has recently denied the allegations made by Hindenburg Research. Hindenburg had alleged that changes in SEBI rules were made to benefit a multinational company where SEBI Chairperson Madhabi Book’s husband Dhaval is working.
Allegations of Hindenburg Research
Hindenburg Research, an American short-selling firm, released a report on August 10, 2024, stating that during Madhabi’s tenure, her husband Dhaval was appointed as a senior advisor at Blackstone. The report also said that after Dhaval’s appointment, SEBI made significant changes to the Real Estate Investment Trust (REIT) rules, which were to benefit companies like Blackstone.
SEBI’s clarification
Sebi termed these allegations as “unwarranted” and said that changes to REIT rules are always made after extensive consultation. Sebi clarified that “the REIT Rules, 2014 have been amended from time to time” and all new rules or amendments have a robust consultation process.
Sebi said, “As always, feedback is taken from the industry, investors, intermediaries and the public for proposing new rules or changes to existing rules.” Further, Sebi also said that agenda papers and decisions of board meetings are published on the Sebi website, ensuring transparency.
