New Delhi (TIP)- As many as three Adani group companies, including Adani Enterprises, have come under short-term additional surveillance measure (ASM) framework of the BSE and NSE, according to the latest data available with the exchanges on Thursday, February 2. Apart from Adani Enterprises, the other two firms listed by the exchanges are — Adani Ports and Special Economic Zone and Ambuja Cements.
The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earning ratio. The National Stock Exchange (NSE) and BSE said these companies have satisfied the criteria for inclusion in short-term additional surveillance measure or ASM.
Under the short-term ASM, the exchanges said, “applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to maximum rate of margin capped at 100 per cent, with effect from February 6, 2023 on all open positions as on February 3, 2023 and new positions created from February 6, 2023”.
Market experts believe that putting in this framework means intra-day trading would require 100 per cent upfront margin.
The exchanges also 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 or entity. Meanwhile, shares of Adani Enterprises tumbled over 26 per cent on Thursday, a day after the firm said it has decided not to go ahead with its Rs 20,000-crore Follow-on Public Offer (FPO) and will return the proceeds to investors. The counter had plunged more than 28 per cent on Wednesday. Most of the other group firms also declined for the sixth day in a row on Thursday and 10 listed Adani Group firms have faced a combined erosion of over Rs 8.76 lakh crore in past six days.
Adani Group stocks have taken a beating on the bourses after US-based Hindenburg Research made a litany of allegations in a report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group. Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
Adani’s market losses top $100 bn as shelved FPO spooks investors
Adani Group’s market losses swelled to more than $100 billion and sparking worries about their potential systemic impact on Thursday, February 2, a day after its flagship company abandoned a $2.5-billion stock offering.
The withdrawal of Adani Enterprises’ share sale caps a dramatic setback for founder Gautam Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but have dwindled over the past one week after US-based short-seller Hindenburg published a critical research report.
Cancelling the share sale saw Adani stocks plunge, Opposition lawmakers call for a wider probe and the central bank spring into action to check on banks’ exposure.
Citigroup’s wealth unit has stopped extending margin loans to its clients against securities of Adani Group and cut the loan-to-value ratio for credit against Adani securities to zero on Thursday, a source said.
Adani late on Wednesday, February 1, called off the share sale as a stocks rout sparked by short-seller Hindenburg’s criticisms intensified, despite the offer being fully subscribed.
Stock Exchanges put 3 Adani Group companies under short-term surveillance
