Adani Green, NDTV: NSE takes THIS action against two Adani Group stocks

National Stock Exchange on Wednesday moved two Adani Group stocks to long-term additional surveillance measures framework Stage - II from long-term ASM framework Stage - I. Adani Green Energy Ltd and NDTV are the two stocks against which NSE has taken the action, which will come into effect from March 9.

Also, on Wednesday, NSE announced that Adani Enterprises Ltd, Adani Power and Adani Wilmar have been placed under short-term ASM framework from March 9. On Wednesday, scrips of Adani Green and NDTV on BSE closed trading 5% higher. Adani Enterprises' scrip on BSE closed nearly 3% higher at Rs 2,039 while Adani Power and Adani Wilmar closed 5% higher.

At present, there are 29 stocks on NSE under short-term ASM framework. On the other hand, there are 89 stocks under long-term ASM.

The Adani Group stocks have been battered following serious allegations by the US short seller Hindenburg Research that led to selloff in the conglomerate's listed scrips, which led to market sell-off to the tune of $130 billion.

Interestingly, on Monday, the National Stock Exchange (NSE) and BSE on Monday announced that Adani Enterprises, the flagship firm of Adani Group, will move out from the short-term additional surveillance measure (ASM) framework from March 8.

Last month, both the NSE and BSE had put three Adani Group companies under the short-term additional surveillance measure framework to curb volatility induced in the counters due to an US short seller's scathing report against the conglomerate. Apart from Adani Enterprises, the other two firms listed by the exchanges were - Adani Ports and Special Economic Zone (APSEZ) and Ambuja Cements. However, APSEZ and Ambuja Cements were removed from the ASM framework on February 13.

The listed firms of Adani Group saw a whopping $130-billion erosion of market value since January 24, when Hindenburg Research released a report alleging stocks manipulation and accounting fraud by the Gautam Adani-led conglomerate.

Adani Group had denied all the allegations, and accused Hindenburg of committing a "calculated securities fraud".

Adani Group stocks recorded a sharp recovery since late last week as US boutique investment firm GQG Partners announced a cumulative investment of Rs 15,446 crore in four Adani firms, namely Adani Enterprises, Adani Green Energy, Adani Ports and Adani Transmission. Billionaire Gautam Adani's fortunes topped $50 billion-mark as Adani shares have started rallying post GQG's investment.

Stock exchanges put stocks under ASM based on several parameters including high-low price variation, volume variation, delivery percentage, client concentration in stocks, close-to-close basis price variation and market capitalisation, among others.

In short, stocks with unusually high volatility are put under ASM framework. The main objectives of these measures are to alert investors to be extra-cautious and advice them to carry out due diligence while dealing in such stocks. The framework came into force in March 2018.

As per NSE, applicable margin rate for the stocks under ASM Stage - I is 50 per cent or existing margin, whichever is higher, subject to a maximum margin of 100 per cent. For Stage - II, the applicable margin rate is 100 per cent or existing rate, whichever is higher.

If the stock continues to meet the criteria for short-term ASM without attracting the criteria for Long-term ASM, it is subjected to the Stage II ASM framework. If it is moved to long-term ASM, short-term provisions do not apply to stocks.

National Stock Exchange on Monday removed four Adani Group firms, Adani Enterprises Ltd, Adani Green Energy, Adani Total Gas and Adani Transmission, along with 10 other firms, from its Nifty Alpha 50 index.

NSE has also excluded Adani's cement stocks, Ambuja Cements and ACC, from Nifty Low Volatility 50 index.

Also, Adani Enterprises, Adani Green Energy, Adani Ports, Adani Total Gas, and Adani Transmission got excluded from the Nifty 100 Alpha 30 index. Meanwhile, Adani Enterprises also got excluded from the Nifty 200 Alpha 30 index.