NSE, BSE put 3 Adani Group companies under short-term additional surveillance measure

A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange building in Mumbai on February 1, 2023.
| Photo Credit: Reuters

As many as three Adani Group companies, including Adani Enterprises, have come under short-term additional surveillance measure (ASM) framework of the BSE and NSE, according to the latest data available with the exchanges on February 2.

Apart from Adani Enterprises, the other two firms listed by the exchanges are Adani Ports and Special Economic Zone and Ambuja Cements.

The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earning ratio.

The National Stock Exchange and the BSE said these companies have satisfied the criteria for inclusion in short-term additional surveillance measure or ASM.

Also read: How much has the Adani group lost since the Hindenburg report?

Under the short-term ASM, the exchanges said “applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to maximum rate of margin capped at 100 per cent, with effect from February 6, 2023 on all open positions as on February 3, 2023 and new positions created from February 6, 2023”.

Market experts believe that putting in this framework means intra-day trading would require 100% upfront margin.

Also read | Adani stocks continue to plunge after FPO removal

The exchanges also noted 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 or entity.