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regular-article-logo Friday, 22 November 2024

If I say anything on REIT, will get accused of conflict of interest: Sebi chief Madhabi Puri Buch

REITs are a new concept in the Indian market but have been a popular choice globally for their lucrative returns and capital appreciation

PTI Mumbai Published 02.09.24, 04:54 PM
Madhabi Puri Buch.

Madhabi Puri Buch. File picture.

Capital markets regulator Sebi Chief Madhabi Puri Buch on Monday said a single disclosure by listed companies on one stock exchange will soon be automatically uploaded on the other bourse.

This comes after the Securities and Exchange Board of India (Sebi) recently proposed sweeping changes to disclosure as well as listing requirements by listed companies based on recommendations from a committee led by S K Mohanty, former whole-time member of Sebi.

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Speaking at the Special Plenary Session with Sebi on "Regulatory Landscape: What is needed for Viksit Bharat?" at the Financing 3.0 Summit organised by Confederation of Indian Industry (CII) here.

Buch said, "a single filing with the exchange will be a reality very soon".

As part of the proposed changes, a filing made on one exchange will automatically collate on the other exchange, she said.

A filing made on one exchange will automatically collate on the other exchange.

Additionally, Buch said soon investors will be able to start SIP (Systematic Investment Plan) with as low as Rs 250 per month.

"We are on the way of Rs 250 SIP becoming a reality," she said.

Buch avoided commenting on Real Estate Investment Trusts (REITs), but said there are regulations simplifying such entities.

"If I utter a word on REITs, I will be accused of conflict of interest," she added.

The remarks came as US short-seller Hindenburg Research raised questions about a potential conflict of interest involving Buch and private equity major Blackstone.

Her husband Dhaval Buch is a senior advisor with Blackstone, a major player in the REIT space. However, the couple refuted the allegations.

Also, Hindenburg alleged that Sebi's recent amendments to REIT regulations 2014 favoured a specific financial conglomerate, which Sebi denied.

The Sebi chief highlighted plans to make IPO documents available in multiple languages to remove language barriers and increase investor awareness. Also, she emphasised on the importance of the inclusion.

Additionally, she said creating capital for the industry and wealth creation for the citizens of the country are two very important areas of the regulator.

Buch stressed on the need of adoption of technology in markets, complexity of the market (right product for the right person) and co-creation with the industry.

On co-creation, Buch said, "It is not because that the regulator is magnanimous, it's out of sheer necessity, which will actually serve the market." Buch said the march towards the Viksit Bharat will be hastened by efficient utilisation of national resources that will drive economic prosperity and, in effect, facilitate social inclusion by ensuring that every citizen participates in the growth process, she said.

Stating that with monetary capability and the requisite technology, India is firmly on the path of growth and is progressing firmly on the Viksit Bharat trajectory, Buch said this is evident from the two important sets of real-time data, the growth of taxes -- GST, advance tax, among others -- and rising energy consumption, both of which are a testimony to India's rising prowess.

On capital formation, she was of the view that it will require the provision of adequate capital to industry to fuel growth and the wealth so generated should then percolate down to the common man.

The inclusion agenda is of prime importance to Sebi, she said, adding that the introduction of Rs 250 SIP, by reducing the servicing cost, is an example in the direction of making financial products accessible to the common man.

Emphasising on the importance of building scale through technology adoption in taking the market forward, she said the second area to drive markets is that of complexity for which an ecosystem is being developed to increase the asset classes so that there is a right product for the right person.

Sebi will facilitate development of new products, in co-creation and consultation with the industry, to cater to the emerging needs, she said, adding that the Industry Standards Forum, having industry participation, has been effective and many new steps such as single filing would be a reality soon, she stated.

IPO prospectus should be in 15-16 vernacular languages to promote wider investor participation, she said.

Speaking at the session, former CII president Sanjiv Bajaj alluded to channelising savings towards productive financial assets through simplifying regulations and reducing transaction costs.

He called for creating a strong bond market, clearing the ambiguity about asset class within REITS, InViTs, common disclosures to facilitate retirement planning, regulatory interventions to enhance the penetration of pension products, among others.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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