Blackstone Gets Pulled Into an Indian Nepotism Scandal

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A short-selling firm has accused the Indian conglomerate Adani Group of stock manipulation, drawing Blackstone into the controversy as they seek to protect their well-established reputation from scandal. Plus, biocentric lighting, designed to mimic natural light and support circadian rhythms, is being integrated into building management systems to enhance cognitive function, productivity, and overall well-being.

Now let’s dig in!

Blackstone Gets Pulled Into an Indian Nepotism Scandal

Indian conglomerate the Adani Group has been accused of orchestrating “the largest con in corporate history” by using offshore shell entities to facilitate stock manipulation, according to allegations made by short-seller Hindenburg Research. Following these accusations, the Securities and Exchange Board of India (SEBI) issued a “show cause” notice to Hindenburg for not sufficiently disclosing its short positions. In response, Hindenburg is now pushing back, and the world's largest investment group, Blackstone, has been caught in the crossfire.

Hindenburg's latest claim alleges that the husband of SEBI Chairperson Madhabi Buch was appointed as Senior Advisor to Blackstone despite lacking experience in funds, real estate, or capital markets. During his tenure at the firm, Blackstone received approval to sponsor India’s second and fourth largest REITs.

Hindenburg's research further accuses Buch of unfairly promoting REIT investment during public engagements: “During industry conferences, SEBI Chairperson Madhabi Buch has touted REITs as her 'favorite products for the future' and urged investors to look 'positively' upon the asset class. While making those statements, she omitted to mention that Blackstone, where her husband is an advisor, stands to gain significantly from the asset class.”

There is much to unpack in this new claim by Hindenburg, and there is still no evidence of wrongdoing by Blackstone. But, the massive amount of press generated by this report, especially in India, will no doubt be a concern for the investment firm. Blackstone, known as one of the world’s most reputable investment firms, aims to be trusted with money from sovereign wealth funds. Allegations of misconduct, even if unfounded, could cause some institutional investors to hesitate before entrusting the firm with large sums of money.

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The co-developer of Bluetooth now focuses on chronobiology, creating biocentric lighting that mimics natural light to support circadian rhythms. His company, Brainlit, integrates this technology with building management systems to enhance cognitive function, productivity, and health, with the goal of making biocentric lighting a universal standard due to its positive impact on well-being.

Check out this week’s Propmodo Technology focus on Lighting.

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