Ready to lift trading ban on Adani Ant’s stock

During periods of high volatility, the Exchange takes measures such as placing stocks under the ASM framework to protect investors from any speculative trading. However, with lower volatility, stocks moving out of the ASM framework would mean less stringent regulations such as removal of 100% margin requirement for intraday traders.

The group’s shares remained under pressure and volatile since the January 24 Hindenburg report raised concerns around the group. However, the group got relief from investment from US-based investment firm GQG partners 15,446 crore in Adani’s four shares last Thursday. This has helped ease the major concerns of investors, leading to a rally in the stock of around 23.5%.

These investments helped create a floor of sorts for Adani Group shares as a leading investor has invested in them at these prices. Besides, the promoters can use the money raised through the transaction to infuse capital into any group company that needs funds through warrants, rights issue or any other means, analysts said .

Analysts also said the development would lead to better sentiment for the market and increase in retail participation, which was down due to uncertainty.

The investment also comes from the belief that Adani Group’s shares have stabilized and can raise capital if they so desire at current prices.

The other two group stocks that were placed under the ASM framework, Adani Ports and Special Economic Zone and Ambuja Cements, were taken out of the ASM framework in February itself.