NSE Puts Three Adani Group Stocks Under Additional Surveillance
The shortlisting of securities is on account of market surveillance, and it should not be construed as adverse action, says NSE.
The National Stock Exchange has put Adani Enterprises Ltd., Adani Ports and Special Economic Zone Ltd., and Ambuja Cements Ltd. under short-term additional surveillance measure.
Under the framework, applicable margin will be 50% or existing margin, whichever is higher, subject to maximum rate of margin capped at 100%, a circular on the NSE said. This will be effective from Feb. 6 on all open positions as on Feb. 3 and new positions created from Feb. 6.
"It may also be noted that the shortlisting of securities under ASM is purely on account of market surveillance, and it should not be construed as an adverse action against the concerned company/entity," it said.
The ASM Framework is based on objective parameters like price/volume variation and volatility, among others.
The parameters include high-low variation, client concentration, close to close price variation, market capitalisation, volume variation, delivery percentage, number of unique PANs and price equity ratio.
The largest Indian stock exchange also reduced the band of Adani Total Gas Ltd. from 10% to 5%.
The price band on the exchanges determine the range in which a security's price can move. The mechanism is used to maintain market integrity and curb excessive price movement in the securities.
These surveillance measures were imposed after shares of several Adani Group companies plunged following a report by New York-based Hindenburg Research questioning alleged related-party network. The Adani Group has called the report a "malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts".
The group's flagship company, Adani Enterprises, also revoked its Rs 20,000 crore follow-on public offer after fluctuation in its stock price.
Shares of Adani Enterprises and Adani Ports & SEZ were down 26.7% and 6.6% at the close on Thursday. Ambuja Cements closed 5.52% higher on Thursday.
The benchmark Sensex closed nearly 0.4% higher while the Nifty 50 ended almost unchanged.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.