Stock Exchanges Reduce Price Bands Of Three Adani Group Firms
Price bands for Adani Transmission, Adani Total Gas and Adani Green Energy were reduced from 20% to 10%.
The Bombay Stock Exchange and the National Stock Exchange reduced the daily circuit breakers limit of three Adani Group companies.
Price bands for Adani Transmission Ltd., Adani Total Gas Ltd. and Adani Green Energy Ltd. were reduced from 20% to 10%.
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.
The move comes after shares of several Adani Group companies plunged after New York-based Hindenburg Research alleged fraud and stock manipulation.
Shares of Adani Transmission have fallen 38.6%, and Adani Total Gas is down nearly 40% since Jan. 24. Adani Green Energy shares have declined nearly 38.45% since the report was published.
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".
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.