NSE, BSE Remove Three Adani Group Stocks From Short-Term Surveillance

The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earning ratio

The exchanges have announced that three Adani Group firms, Adani Enterprises, Adani Power, and Adani Wilmar, will move out of the short-term additional surveillance measure.

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The two stock exchanges, the National Stock Exchange (NSE) and the BSE, have announced that Gautam Adani-led Adani Group's three firms, Adani Enterprises, Adani Power, and Adani Wilmar, will move out of the short-term additional surveillance measure (ASM). The stocks will be excluded from the short-term ASM framework with effect from March 17, according to separate circulars available on the exchanges.

The NSE and the BSE had put the three Adani Group companies, including the flagship firm Adani Enterprises, under the ASM framework on March 8. The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earning ratio.

In addition, the NSE said that on these securities, "margins to be restored prior to ASM on all existing derivative contracts." Tata Teleservices (Maharashtra) Ltd (TTML) is also another stock that was excluded from the framework.

"Applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to maximum rate of margin capped at 100 per cent, w.e.f. March 20, 2023 on all open positions as on March 17, 2023 and new positions created from March 20, 2023," the exchanges said on Thursday. Putting in stocks under this framework means intra-day trading would require 100 per cent upfront margin, as per the market experts.

During instances of high volatility in shares, the bourses move stocks to short-term or long-term ASM framework to safeguard the investors from short-selling.

Meanwhile, stocks of six Adani group companies out of the 10 listed entities ended in the green territory on Thursday. At the end of the session, the six group firms were settled in the green, while four closed in the red.

After taking a beating on the bourses, following the report by US-based short seller Hindenburg Research, the group stocks had recovered. However, amid sluggish broader market trends, the group's stocks have declined in the last few trading sessions.

The report had made a litany of allegations, including fraudulent transactions and share-price manipulation, against it. The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.