Adani Enterprises, Adani Power, and Adani Wilmar will be removed from the National Stock Exchange’s short-term additional surveillance measures (ASM) framework from Friday. The stocks were added to the framework eight days ago – two days after it was announced that Adani Enterprises would be excluded from the exchange’s ASM from the first time it was added. The decision to add the firms’ shares into the surveillance framework had come following the steep rise in the share price.
The Adani scrips are among 10 other stocks that will be excluded from the NSE’s ST-ASM, which are Kiri Industries, Tata Teleservices, Uniinfo Telecom Services, D B Realty, Pennar Industries, Focus Lighting and Fixtures, and Geekay Wires.
Adani Green Energy and NDTV shares were moved to NSE’s long-term ASM framework, according to a circular released by the exchange eight days ago. Last month, Adani Ports and SEZ and Ambuja Cements were also placed under the short-term additional surveillance measure to reduce the heightened volatility faced by the stocks following the US financial forensic research firm, Hindenburg Research’s scathing report, alleging the Group of large-scale fraud and stock market manipulation. However, the two companies were removed from the framework on 13 February.
SEBI and the exchanges jointly introduced the ASM framework to “alert and advise investors to be extra cautious when dealing in these securities” according to an NSE circular. Certain trading restrictions are imposed on stocks that fall under the framework. “Applicable rate of margin shall be 50% or existing margin, whichever is higher, subject to maximum rate of margin capped at 100% with effect from March 10, 2023 on all open positions as on March 9, 2023 and new positions created from March 10, 2023,” said NSE on the actions under the short-term ASM framework. This seeks to deter traders from taking excessive risks and reduce volatility, since the liquidity will reduce.
On Thursday, Adani Enterprises stock closed at Rs 1840, marginally up by 0.05% on the NSE, while Adani Wilmar was down by 1.08% to Rs 422 and Adani Power plunged by 1.73% to end at Rs 198.3.