The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) announced that three companies of the Adani group that were placed under the short-term Additional Monitoring Measure (ASM) will now move out of it. According to separate circulars available on the exchanges, shares of Adani Enterprises, Adani Power and Adani Wilmar will be delisted from March 17.
NSE and BSE had on March 8 placed three Adani group firms, including flagship firm Adani Enterprises, under the ASM framework. The parameters for shortlisting securities under ASM include high-low divergence, client concentration, number of price band hits. Close-to-close price variation and price-earnings ratio. Further, NSE said that on these securities, “margins on all existing derivative contracts should be restored before the ASM.”
Tata Teleservices (Maharashtra) Limited (TTML) is also another stock that was kept out of the framework. “The applicable rate of margin shall be 50 per cent or the existing margin whichever is higher, subject to a maximum rate of margin of 100 per cent, on all open positions from March 20, 2023 to March 17, 2023 and new positions created from March 20, 2023 ,” the exchanges said on Thursday.
According to market experts, placing shares under this framework would mean 100 per cent upfront margin would be required for intra-day trading. In case of high volatility in the stocks, the exchanges move the stocks to short-term or long-term ASM framework to protect investors from short-selling.
Meanwhile, shares of six Adani group companies out of 10 listed entities ended in the green zone on Thursday. Six group companies ended the session in the green, while four closed in the red. After taking a beating on the exchanges, the group’s shares had corrected following a report by US-based short seller Hindenburg Research. However, the shares of the group declined in the last few trading sessions amid a sluggish broad market trend.
The report made several allegations against it, including fraudulent transactions and share-price manipulation. The group has dismissed the allegations as false, adding that it complies with all laws and disclosure requirements.
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