Unusual price movement in the stocks of a business conglomerate: SEBI amid Adani row

The market regulator stated: “As part of its mandate, SEBI seeks to maintain orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks. This mechanism gets automatically triggered under certain conditions of price volatility in any stock.”

Stock exchanges BSE and NSE have put three Adani group companies — Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements — under their short-term additional surveillance measure (ASM), which basically means that intra-day trading would require a 100 per cent upfront margin and is aimed at curbing speculation and short-selling in these stocks.

The statement comes hours after Finance Minister Nirmala Sitharaman said that India’s macro fundamentals and image are not affected by after Adani Enterprises canceled its Rs 20,000 crore follow-on public offer (FPO) following US-based short seller Hindenburg’s “stock manipulation” allegations, and that it the country’s perception remained “intact”.

The Finance Minister also said that the regulators will do their job on the Adani issue and that the has the wherewithal to ensure the stability of markets. Sitharaman noted that the regulators are independent of the government, and “they’re left to themselves to do what is appropriate so market is well regulated”.

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