Dow Jones Says Will Drop Adani Enterprises From Sustainability Indices

Dow Jones said changes to its sustainability indices will be effective prior to the opening on February 7.

Representational image.

Source : Getty

After leading stock exchanges BSE and NSE put Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements under short-term additional surveillance measure framework, S&P Dow Jones has also said it will remove Adani Enterprises from its sustainability indices. 

In a statement, S&P Dow Jones Indices said: "Adani Enterprises will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud." 

The statement said the changes to the Dow Jones Sustainability Indices would be effective prior to the opening on February 7.

Stocks of the Gautam Adani-led group have lost over $100 billion in value since short seller based out of New York came out with a report alleging fraud by the conglomerate.

Adani Group's 10 listed firms are reported to have faced an erosion of over Rs 8.76 lakh crore in the last six trading sessions.

On Friday morning, Adani Enterprises shares were trading 15 per cent lower on the BSE, after an over 26 per cent plunge Thursday and more than 28 per cent Wednesday.

Quoting market experts, news agency PTI reported that the stock exchanges' decision to put the three Adani Group companies in the additional surveillance measure framework meant 100% upfront margin would be required for intra-day trading.

Oppn Parties Step Up Pressure For Probe  

On Wednesday, Adani Enterprises withdrew its Rs 20,000-crore Follow-on Public Offer, or FPO, and said it would refund the investors. Gautam Adani later said the decision was considered after volatility seen in the market, and that “the board felt that it would not have been morally correct to proceed with FPO”. 

Earlier, the group dismissed the charges of fraud as "lies". It said the Hindenburg report was timed with a "mala fide intention" to damage Adani Enterprises FPO.

Meanwhile, various opposition parties have demanded a probe by a Joint Parliamentary Committee or a Supreme Court-monitored committee into the entire issue. They also want a discussion in Parliament on the Adani stock rout.

On Friday, at least 16 Opposition parties met in the morning to discuss their strategy in Parliament. According to a PTI report, they decided to step up their attack on the government as they demand an immediate discussion on the entire issue.

They had stalled both houses of Parliament over the issue on Thursday.