On Wednesday, Major exchanges NSE and BSE said they would include Adani Power under the framework of short-term additional supervisory measures (ASM) on Thursday.
According to a separate announcement provided by the exchange, Adani Power was shortlisted for the first phase of the short-term ASM framework, effective March 23.
The move also came from two exchanges moving Adani Group shares – Adani Green Energy and NDTV – from Phase 2 of the long-term ASM framework to Phase 1 on Monday.
Interestingly, both exchanges included Adani Power, Adani Enterprises, and Adani Wilmar in the short-term ASM framework on March 8. However, these three stocks were excluded from the short-term ASM framework on March 17.
Currently, there are no Adani Group shares in the short-term ASM framework.
Parameters for shortlisted securities under the ASM include:
- High-low change.
- Client concentration.
- Number of price band hits.
- Closing price change.
- Price-to-earnings ratio.
NSE and BSE said Adani Power had met the short-term ASM inclusion criteria.
Under the short-term ASM, the exchanges said, “The applicable rate of margin will be 50% or the existing margin, whichever is higher, subject to a maximum rate of margin of 100% with effect from March 24, 2023, on all open positions till March 23, 2023, and new posts created from March 24, 2023.”
According to market experts, adopting this framework means that day trading will require a 100% upfront margin.
The exchange also noted that the listing of securities under the ASM is purely for market surveillance purposes and should not be construed as an adverse action against the company or entity concerned.
Meanwhile, shares of Adani Group companies, eight out of 10 listed entities, closed in the green zone on Wednesday.
Shares of the conglomerate have rallied after the stock market was hammered following a report by US short-seller Hindenburg Research. However, the group’s shares have fallen amid a sluggish broader market in recent sessions.
The report made a barrage of allegations, including fraudulent trading and stock price manipulation. The group dismissed the allegations as lies, saying it complied with all legal and disclosure requirements.
