3 Adani stocks to move out of NSE’s short-term ASM framework amid Hindenburg row

In a circular on Thursday, the NSE said 10 securities will be excluded from the short-term ASM framework with effect from March 17, 2023. this includes Adani EnterprisesAdani Wilmar, and Adani Power,

Further, the exchange said that “margins to be restored before ASM on all existing derivative contracts” on these securities.

Other stocks taken out of the framework are — Kiri Industries, Tata Teleservices, Uniinfo Telecom Services, DB Realty, Pennar Industries, Focus Lighting & Fixtures, and Geek Wires.

According to NSE, the applicable rate of margin will be capped at 50% or the existing margin, whichever is higher, on all open positions from March 20, 2023 till March 17, and 100% on new positions, subject to a ceiling rate of margin. Created from 20 March.

It added, “Market participants should note that the ASM framework will be in conjunction with all other extant supervisory measures as may be implemented by the exchanges from time to time.”

Adani Enterprises share on BSE Marginal gain at Rs.1842.60. While Adani Wilmar closed down by 1.4%. Closes at 420.95 and Adani Power closes down 1.7% 198.75 each.

On March 8, NSE inducted Adani Enterprises, Adani Power and Adani Wilmar under the short-term ASM framework.

The shortlisting of securities for placement in the ASM is based on an objective criteria decided jointly by SEBI and the exchanges. These include parameters such as high-low variance, client concentration, close-to-close price variance, market capitalization, volume variance, distribution percentage, number of unique PANs, and value of equity.

ASM stands for Monitoring Concerns on Securities based on Price or Volume Variation, Volatility etc.

Adani shares came under pressure in February after a report by US-based short seller Hindenburg accused the group of stock manipulation, fraud and tax evasion. The Adani group is currently being investigated by SEBI.

In early March, Adani shares started showing some recovery after US-based investment boutique GQG Partners bought equity shares of four of its companies at a premium 15,446 crore in a series of secondary block deals. These companies are Adani Enterprises, Adani Ports, Adani Transmission and Adani Green Energy.

Most of the rating agencies like Care Edge, India Ratings, and ICRA have negative outlook on Adani companies— Adani Enterprises, Adani Ports, Adani Green Energy and Adani Total Gas. The problem that has raised concerns among Adani companies is their cash flow and financial flexibility.

Giving a ‘negative’ outlook on Adani Enterprises in early March, CARE in its report said the markets regulator, Sebi, is expected to complete investigations related to reporting mechanisms, adequacy of disclosures, and manipulation of stock prices, among other aspects. Is. investigation in a timely manner.

Adani is currently trying to repay his loan. As per reports, the group is currently repaying debt through cash balances, raising funds through the open market, and money generated from business operations among others. Also, reports say that the company is planning to repay the debt through stake sale in the cement business.