Journalism of Courage
The shares of Adani Enterprises slumped nearly 3 per cent on Thursday after the stock exchanges put the company’s stock under a short-term Additional Surveillance Measure (ASM) framework.
The BSE and the National Stock Exchange (NSE) on Wednesday, in two separately released circulars, said that the Adani group’s flagship firm Adani Enterprises Ltd (AEL) was shortlisted in short-term ASM framework Stage-I, with effect from May 25, i.e., today.
The stock exchanges said that under the ASM framework, “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 May 26, 2023 on all open positions as on May 25, 2023 and new positions created from May 26, 2023.”
Adani Enterprises shares fell as much as 3.83 per cent in the intraday trade today to touch a low of Rs 2,386.35 on BSE. At the time of writing, the shares of AEL were trading 2.65 per cent down on BSE, at Rs 2411.25.
On Wednesday, AEL shares plunged nearly 8 per cent in the intraday session to touch a low of Rs 2,425.35. The stock had closed at Rs 2,475.60 yesterday.
Previously, in three trading sessions from Friday to Tuesday, AEL’s stock jumped 39.41 per cent after an expert committee appointed by the Supreme Court said it had found no evidence of stock price manipulation in the Adani Group companies.
In January, US short-seller Hindenburg Research in a report said that the conglomerate “has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.” While the Adani group denied the allegations levied by the short seller, the Hindenburg report led to a rout of over $100 billion in Adani companies.
The SC last week granted market regulator Sebi an extension of three months, till August, to complete its probe against the group, the initial findings by the court’s panel led to a spurt in stocks of Adani group companies.
