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Sebi chief Madhabi Puri Buch says compliance must not burden companies

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MUMBAI: In her first public appearance since Hindenburg’s conflict-of-interest allegations, Sebi chief Madhabi Puri Buch said that complying with regulations should not be a burden for companies, rather it should be like a “low hum in the background”.
She was speaking at the Global Fintech Fest here during which she stressed compliance by regulated entities is essential for investors’ trust in markets.She also said that there has been a positive response to regulations framed by Sebi for small and medium REITs (real estate investment trusts).
On Aug 10, a report by US-based short-seller Hindenburg Research alleged conflict of interest on her part in investigating Adani group’s role in corporate malfeasance. Puri Buch and Adani group have denied all allegations.
The Sebi chief had also said that it had received over 6,000 comments on its consultation paper that proposed wide ranging changes to the rules for trading index-based derivative contracts. She said that the regulator was leveraging technology to scan through all the comments. And indicated that without the use of technology it would have been a massive task to scan through all the comments within a short time.
Buch said that the small and medium REIT regulations were implemented after industry players, who, until recently were not regulated and thus faced trust-deficit from investors, approached the regulator. These norms are expected to allow greater participation of investors in the REIT segment of the market and give a boost to fractional ownership of real estate properties.
In its report, Hindenburg had pointed out that Puri Buch’s husband, Dhaval Buch had joined Blackstone, a major player in India’s REITs space, when Buch was a whole time member at Sebi. Hindenburg had alleged that after Dhaval joined Blackstone, Puri Buch was instrumental in changing several of REIT regulations. The Sebi chairperson and her husband have denied these allegations as well.



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