Adani Enterprises back to short-term ASM framework by NSE, BSE

Shares of Adani Enterprises have been put under the short-term ASM framework from Thursday by leading bourses BSE and NSE.

Adani Enterprises Ltd is shortlisted in short-term Additional Surveillance Measure (ASM) framework Stage-I effective from May 25, the National Stock Exchange (NSE) and the BSE said in two separate circulars on Wednesday.

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 May 26, 2023 on all open positions as on May 25, 2023 and new positions created from May 26, 2023.”

Stocks are moved into the short-term or long-term additional surveillance framework by exchanges in order to warn investors of unusual movement in share prices. The stock exchanges place trading restrictions to curb volatility and potential losses to retail investors.

In March, NSE and BSE removed Adani Enterprises from the short-term ASM framework.

The shares of Adani Enterprises dropped nearly 8 per cent in intraday trade on Wednesday to a low of 2,425.35. 

In the past three days, the stock had jumped 39.41 per cent after a Supreme Court-appointed panel found no evidence of stock price manipulation in the group companies as alleged by Hindenburg Research.

While the apex court gave two more months to market regulator SEBI for investigating the matter, the initial findings in the report came as big relief for Dalal Street investors.

Recently, GQG Partners, who in March, bought ₹15,000 crore worth of Adani shares, raised the stake in the group by 10 per cent. 

The stock eventually ended 6 per cent down at ₹2,475 on the BSE.