Morgan Stanley Capital International (MSCI) has postponed implementing the weighting changes for Adani Total Gas and Adani Transmission stocks in its indices. Due to potential replicability issues, MSCI has decided to defer the date of the reduction in weightage for Adani scrips till at least the review pending in May. The statement said, “In light of potential replicability issues due to impact from price limit mechanisms in specific securities associated with the Adani Group, MSCI will postpone the implementation of such previously announced updates to the FIFs for the below securities to the May 2023 Index Review: Adani Total Gas & Adani Transmission.”
Earlier, last week, MSCI cut the free-float designations of four Adani group stocks, in a move that could impact index weightings of these stocks. However, now, the reversal would reflect in MSCI indices starting from February 16, 2023, it said. MSCI will also apply a special treatment for all Adani Group’s associated securities in the MSCI Equity Indexes starting from the February 2023 Index Review.
In the February index review, MSCI had said it has reduced the free floats of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC
Adani Group has been engulfed in crisis since US-based short-seller Hindenburg Research accused the Adani family of money laundering and stock manipulation. The report raised concerns over the extremely high levels of debt and valuations of the companies. Hindenburg said that it has taken short positions in Adani’s U.S.-traded bonds and non-Indian traded derivatives.