According to separate circulars posted on the exchanges, the equities will be removed from the short-term ASM framework as of March 17.
Adani Enterprises, Adani Power, and Adani Wilmar, all part of the Adani group, have been cleared to leave the temporary enhanced surveillance measure imposed by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) (ASM).
According to separate circulars posted on the exchanges, the equities will be removed from the short-term ASM framework as of March 17. The three companies in the Adani group, including the parent company Adani Enterprises, were placed within the ASM framework on March 8 by the NSE and the BSE.
In ASM, the high-low range, client concentration, price band hits, close-to-close range, and price-earnings ratio are used to create a shortlist of assets.
The NSE further noted that “margins should be restored prior to ASM on all current derivative contracts” related to these securities.
Similarly, the stock TTML (Tata Teleservices (Maharashtra) Ltd) was not included in the methodology.
The exchanges announced on Thursday that beginning on March 20, 2023, the “applicable rate of margin shall be 50% or existing margin whichever is higher,” with a maximum rate of margin capped at 100%. This applies to both existing positions as of March 17, 2023, and any new positions created from March 20, 2023 onward.
According to market experts, in order to invest in stocks under this framework, a 100% initial margin is required for intraday trading. To protect investors from potential losses due to short selling, bourses temporarily place equities in either a short-term or long-term ASM framework during periods of extreme share price volatility.
Nonetheless, six of the ten publicly traded Adani group companies ended Thursday in the green. Only two of the six enterprises in the group ended the day in the red, while the other four ended in the green.
The group’s equities had recovered after initially tanking on the bourses in response to the report from American short seller Hindenburg Research. However, in recent trading sessions, the group’s equities have plummeted in tandem with the general market. Many serious charges, such as stock price manipulation and fraudulent dealings, were made against it in the study.
The organisation has called the allegations baseless, claiming that it follows all applicable regulations and disclosure mandates.