NSE and BSE said they will include Adani Power under the short-term Additional Monitoring Measures (ASM) framework with effect from March 23. Photo Credit: Reuters
Leading exchanges NSE and BSE on Wednesday said they will include Adani Power under the short-term Additional Supervisory Measures (ASM) framework from Thursday.
As per separate circulars available on the exchanges, Adani Power has been shortlisted in the Short-Term ASM Framework Stage-I with effect from March 23.
The move comes after Adani Group stocks – Adani Green Energy and NDTV – were moved from the second stage of the long-term ASM framework to the first stage on Monday by two exchanges.
Interestingly, both the exchanges had placed Adani Power under short-term ASM on March 8 along with Adani Enterprises and Adani Wilmar. However, these three stocks were taken out of the short-term ASM framework on March 17.
Currently, there is no Adani Group stock in the short term ASM framework.
The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, near-to-near price variation and price-earnings ratio.
NSE and BSE said that Adani Power has fulfilled the criteria for inclusion under short-term ASM.
Under the short-term ASM, the exchanges said, “The applicable rate of margin will be 50 per cent or the existing margin, whichever is higher, subject to a maximum rate of margin of 100 per cent, on all open positions from March 24, 2023 to March 23, 2023.” And new posts were created from 24th March, 2023.
Market experts believe that putting in this framework would mean 100 per cent upfront margin would be required for intra-day trading.
The exchanges also noted that the shortlisting of securities under ASM is purely due to market monitoring, and should not be construed as an adverse action against the company or entity concerned.
Meanwhile, shares of eight Adani group companies out of 10 listed entities closed in the green zone on Wednesday.
After taking a beating on the exchanges, the group’s shares had corrected following a report by US-based short seller Hindenburg Research. However, the shares of the group declined in the last few trading sessions amid a sluggish broad market trend.
The report made several allegations against it, including fraudulent transactions and share-price manipulation.
The group has dismissed the allegations as false, adding that it complies with all laws and disclosure requirements.