Adani Group: NSE puts 3 group stocks under additional surveillance

As Adani group stocks continue their downward spiral for the seventh day, the National Stock Exchange has now placed an additional surveillance on three of the group company stocks - Adani Enterprises, Adani Ports and Ambuja Cements.

Now, trading in the shares of these three firms will require a 100 percent margin, which is aimed at curbing speculation and shortselling. Additional surveillance mechanism is a signal to investors that the stocks have seen unusual activity.

The criteria for additional surveillance mechanism are jointly decided by the capital markets regulator, SEBI and the stock exchanges. The parameters include “high low variation, client concentration, PE, close to close price variation, market capitalisation, volume variation, delivery percentage, and number of unique PANs”.

Two days ago, on Wednesday, in a dramatic late night move, Adani Enterprises called off its fully subscribed, Rs 20,000 crore follow-on public offering and announced that it would return the money to investors. The reason for this, the group said, was the unprecedented conditions and market volatility.

The Adani group stocks have been crashing day after day since the U.S based short seller Hindenburg Research released a report which accused the group of stock manipulation and fraud.

The Adani Group slammed the accusations, calling them baseless and discredited allegations.