Adani Enterprises, Adani Power, and Adani Wilmar have been included under the National Stock Exchange’s short-term additional surveillance measures (ASM) framework from Thursday. The update came two days after it was announced that Adani Enterprises would be excluded from the exchange’s ASM. The decision to add the firms’ shares into the surveillance framework is following the steep rise in the share price over the past few sessions.
Adani Green Energy and NDTV shares will be moved to stage 2 of NSE’s long-term ASM framework, according to a circular released by the exchange. 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.
A recent report by Bloomberg stated that the embattled group repaid a $500 million bridging loan that was due on Thursday. The shares of the international conglomerate also rose on the back of the news of global equity fund GQG’s Rs 15,466 crore investment in four group entities via block deals last week, saying the group has “fantastic assets”.
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.
Adani Enterprises closed at its monthly high on Wednesday, extending gains for the sixth straight session, following the announcement that the company repaid its share-based funding of Rs 7,374 crore and would pay back all its outstanding debts. The shares of the company closed at Rs 2,039, up 2.83% on the NSE.