Buch gets backing of REIT & alternate capital industry bodies

Mumbai: Industry bodies representing the Real estate investments trusts (REITs) and alternate capital on Monday came in support of Sebi chief Madhabi Puri Buch.

Indian REITs Association (IRA) said that claims made by the US-based short-seller suggesting that the REIT framework made by markets regulator Sebi serves the interests of a select few are “baseless and misleading”.

“Developed in consultation with all market participants, this framework ensures the highest levels of investor protection for both — domestic and international institutional investors, as well as retail investors,” it said.

The Indian Venture and Alternate Capital Association (IVCA) also said it stands firmly behind Buch in the “challenging times” and added that the markets regulator has shown an “unwavering commitment to market integrity, regulatory governance, and investor protection”.

The Amfi (Association of Mutual Funds in India) on Sunday backed Buch. “Creating a trust deficit in the market ecosystem must be seen for what they truly are — attempts to create sensation by connecting random events done in the past,” the industry body said.

Without naming Hindenburg, an IRA statement said, “Recent claims suggesting that the REIT framework serves the interests of a select few are baseless and

misleading.” The statement said after coming into being in 2014, there are four listed REITs at present managing assets of over Rs 1.4 lakh crore and serving over 2.4 lakh unitholders.

Prominent global institutional investors have invested in REITs, it said, adding that their participation strengthens the trust and credibility of India’s financial system.

In its statement, the IVCA said Sebi plays a crucial role in maintaining the integrity and stability of our financial ecosystem.

“We believe that the recent allegations made by Hindenburg are unwarranted and do not reflect a deep understanding of the Indian regulatory environment,” it added.