Check Credit Score
Check Credit Score
HomeNewscompanies

NSE puts Adani Enterprises, Adani Ports, Ambuja Cements under ASM framework amid stock rout

NSE noted that applicable rate of margin shall be 50 percent or existing margin, whichever is higher, subject to maximum rate of margin capped at 100 percent w.e.f. February 6, 2023 on all open positions as on February 3

February 02, 2023 / 08:57 PM IST
Adani group's stocks have nosedived after the Hindenburg report's release

Adani group's stocks have nosedived after the Hindenburg report's release

Amid massive stock rout for almost a week in most of Adani group stocks, the National Stock Exchange (NSE) has put Adani Enterprises, Adani Ports and Ambuja Cements under additional surveillance measure (ASM) framework effective February 3, 2023 to curb short-selling.

NSE, in its circular released on February 2, noted that applicable rate of margin shall be 50 percent or existing margin, whichever is higher, subject to maximum rate of margin capped at 100 percent w.e.f. February 6, 2023 on all open positions as on February 3 and new positions created from February 6.

The ASM list is a list of securities that get monitored due to factors like price fluctuation, volatility, volume variance, etc. Stocks that are shortlisted for inclusion on the ASM list serve as a warning to investors about unusual price movement. There are certain trading restrictions on these stocks to put an end to any potential conjecture.

Further, the stock exchange also stated that the shortlisting of securities under ASM is purely on account of market surveillance, and it should not be construed as an adverse action against the concerned company / entity.

(Source: NSE) (Source: NSE)

The stocks under surveillance shall be retained in Stage-I as applicable for a minimum period of 5 trading days and shall be eligible for review from 6th trading day onwards.

Accordingly, if a stock is not meeting entry criteria on the review date, it would be moved out of Short-term ASM framework. As long as a stock continues to meet the criteria for Short-term ASM without attracting the criteria for Long-term ASM, the stock will continue to be subjected to the Stage II ASM framework.

Action on the shortlisted stocks:

On identification of above stocks, clarification shall be sought from the company about any corporate announcement, if any that has not been disseminated to market. The clarification, so received shall be disseminated to the market.

A Surveillance dashboard shall also be displayed on the Exchange website mentioning the names of such stocks and other relevant details for the information of the investors

NSE's ASM list comes a day after Adani Enterprises said that it has cancelled its Rs 20,000 crore Follow-On Public Offering (FPO) despite getting fully subscribed. It also said that will return money to its investors amid ongoing controversy after American short seller, Hindenburg Research, accused the company of using tax havens and flagged debt concerns in a report.

"The Board of Directors of the Company at its meeting held today i.e. February 1, 2023 has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed," Adani Enterprises had said in an exchange filing late last night.

Billionaire and chairman of Adani Group, Gautam Adani, earlier today spoke publicly for the first time since his ports-to-energy conglomerate publicly battled the Hindenburg Research, saying the abrupt move to withdraw a fully-subscribed share sale at his flagship firm was due to market volatility.

Further, the Reserve Bank of India (RBI) has also asked banks for details of their exposure to the Adani Group.

Meanwhile, Adani Enterprises crashed over 26 percent to close at Rs 1,564.70 apiece on BSE  on February 2. Another group stock Adani Ports ended 6.13 percent lower at Rs 462 apiece, however Ambuja Cements recovered from yesterday's session to close 5.33 percent higher at Rs 352.45 apiece against its previous close.

Moneycontrol News

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347