The domestic bourse National Stock Exchange has removed two Adani Group stocks from the Short-Term Additional Surveillance Measure (ST-ASM) Stage I framework, with effect from Feb 13, 2023.
The stock exchange had added three of the ports-to-power conglomerate’s stocks under its ASM framework earlier this month to curb excessive volatility and keep a check on short-selling.
Adani Ports and Special Economic Zone (NS:APSE) and Ambuja Cements (NS:ABUJ) have been removed from the said framework, becoming effective from Monday, while Adani Enterprises (NS:ADEL) continues to remain under the short-term ASM framework by NSE.
Exiting the ASM framework means that intraday traders will no longer need to pay a 100% upfront margin to avail intraday leverage, which is put in place to protect them from risky and speculative trades, and safeguard the investors’ interest.
The bourse had put the three Adani stocks under additional surveillance after allegations of brazen stock manipulation and accounting fraud schemes made by the US investment research firm Hindenburg Research LLC in late January.
Following the short seller’s 2-year investigation report on India’s second-largest conglomerate, stocks of Adani Group underwent relentless hammering for days, wiping out over $100 billion of investors’ wealth.
(With inputs from agencies)