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    NSE puts 3 Adani Group stocks under additional surveillance framework to curb short selling

    Synopsis

    Since Jan 25, Adani Enterprises’ share value has more than halved, and Adani Ports has shed more than 39%. Today, Adani Enterprises shares ended 27% lower in the cash market at Rs 1,565.25, and those of Adani Ports settled 7% down at Rs 462.45

    Adani Enterprises, Adani Ports, Ambuja Cement under ASM, what does it mean?
    With a view to safeguard investors from the sharp volatility in stocks of Adani Group companies, the National Stock Exchange has moved Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements under the short-term additional surveillance measure (ASM) framework.

    The move is aimed at curbing speculative trades and short-selling. Trading in stocks under the short-term ASM framework will require investors to pay 100% upfront margin even for intraday trading.

    The additional surveillance is part of SEBI and the Exchanges’ initiative to enhance market integrity and safeguard the interest of investors.

    One of the criteria for moving a stock under this framework is if it sees a 25% downside or upside against Nifty 50 for 5 trading days.

    Since Jan 25, Adani Enterprises’ share value has more than halved, and Adani Ports has shed more than 39%. Today, Adani Enterprises shares ended 27% lower in the cash market at Rs 1,565.25, and those of Adani Ports settled 7% down at Rs 462.45.

    The massive sell-off in Adani Group stocks was triggered by allegations of mis-governance and stock price manipulation by US-based whistleblower Hindenburg Research.

    Despite these allegations, which came just ahead of Adani Enterprises’ mega follow-on public offer, the secondary share sale managed to sail through.

    But the negative report by Hindenburg triggered a chain effect. There was no respite for stocks, as the sell-off got aggravated after foreign banks Citigroup and Credit Suisse stopped accepting Adani Group companies’ bonds as collateral for margin loans.

    SEBI is said to be examining the crash in the shares of Adani Group companies to look into any possible irregularities in the FPO. According to reports, the Reserve Bank of India (RBI) has also sought details from banks on their exposure to Adani Group companies, most of which are highly leveraged.

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    ( Originally published on Feb 02, 2023 )
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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