Adani Total Gas, Adani Transmission & Adani Green Energy continue to fall despite exiting ASM framework

Shares of Adani Total Gas Ltd, Adani Transmission Ltd and Adani Green Energy Ltd extended their fall for the second straight session, respectively, in Monday's trade. The plunge came even as the three stocks exited the ASM (additional surveillance measure) framework. Adani Total fell 5 per cent today to hit its lower price band of Rs 777.45 over a previous close of Rs 818.35. Adani Transmission slipped up to 4.99 per cent to trade at Rs 840.80; while Adani Green moved 3.27 per cent lower to trade at Rs 866.70.

The ASM (additional surveillance measure) is an initiative by the Securities Exchange Board of India (SEBI) and exchanges where the bourses share a listing of securities that are currently getting monitored due to factors like price fluctuation, volatility, volume variance, etc. Stocks that are shortlisted for inclusion on the ASM list serve as a warning to investors about unusual price movement.

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, the bourses have stated.

Also, the stocks were in focus as the Supreme Court may consider granting three more months to market regulator Sebi for concluding its probe into the Hindenburg Research allegations. Sebi initiated a probe into the allegations of "stock manipulation and accounting fraud" at Adani Group companies.

The market regulator today told the top court that any incorrect or premature conclusion of its probe into possible lapses of regulatory disclosures by billionaire Gautam Adani's eponymous group will not serve the interest of justice and will be legally untenable.

Sebi, in a court filing, said it has already approached eleven overseas regulators for information to examine if the Adani group had violated any norms regarding its publicly available shares.

Further, two Adani stocks, namely Adani Transmission and Adani Total, would exit from MSCI Global Standard Index, the New York-based finance company has announced as a part of its quarterly comprehensive review. The new adjustments would take place on May 31, 2023.

Adani Group shares saw a massive market value erosion since January 24 this year, when US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. The report led to over $140 billion in value erosion in the listed Adani companies earlier this year. Adani, however, denied all the claims.

Meanwhile, Indian equity benchmarks traded higher in afternoon trade, led by gains in financials, consumer and technology stocks. The 30-share BSE Sensex pack was up 386 points or 0.62 per cent to trade at 62,414, while the broader NSE Nifty index was trading 108 points or 0.59 per cent higher at 18,422.

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