The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have announced that three companies of the Adani Group – Adani Enterprises, Adani Power and Adani Wilmar will withdraw from the short-term additional supervisory measures (ASM).
According to a separate announcement provided by the exchange, these stocks will be excluded from the short-term ASM framework from March 17.
The NSE and BSE placed three Adani group companies, including flagship Adani Enterprises, under the ASM framework on March 8.
Parameters for shortlisted securities under the ASM include:
- High-low change.
- Client concentration.
- Number of price band hits.
- Closing price change.
- Price-to-earnings ratio.
In addition, the NSE said that for these securities, “margins on all existing derivatives contracts will be restored before the ASM.” Tata Teleservices (Maharashtra) Ltd (TTML) is another stock excluded from the framework.
“The applicable margin rate is 50% or existing margin, whichever is higher, up to a maximum marginal rate of 100%, w.e.f. the exchange said on Thursday, “By March 20, 2023, all open positions as of March 17, 2023, and new positions created from March 20, 2023,” the exchange said.
Market experts say taking a stake under this framework means that day trading requires a 100% upfront margin.
In large stock volatility, the exchange moves the stock into a short- or long-term ASM frame to protect investors from short-selling.
Meanwhile, shares of six Adani Group companies out of 10 listed entities closed in the green zone on Thursday.
At the end of the meeting, six group companies closed in green and four in red.
Shares in the conglomerate have rallied after the stock market was hammered following a report by US short-seller Hindenburg Research. However, the group’s shares have fallen amid a sluggish broader market in recent sessions.
The report made a barrage of allegations, including fraudulent trading and stock price manipulation.
The group dismissed the allegations as lies, saying it complied with all legal and disclosure requirements.