Adani Transmission, Adani Total Gas and Adani Green Move Out Of Additional Surveillance Measure Framework

Adani Transmission, Adani Total Gas, and Adani Green Energy have been moved out of the Additional Surveillance Measure (ASM) framework, the BSE and NSE said in a joint statement.

The Additional Surveillance Measure (ASM) is a joint initiative by the Securities Exchange Board of India (SEBI) and exchanges, aimed at safeguarding investor interests and promoting market integrity. Adani Transmission, Adani Green Energy, and Adani Total Gas stocks were categorized under ASM based on factors such as price, volume variation, and volatility. However, BSE and NSE have now announced that the stocks of these three Adani Group companies will be traded outside the purview of the ASM category from Monday.

In order to protect investors' interests and strengthen market integrity, stock exchanges and market regulator Securities and Exchange Board of India (Sebi) created the ASM framework. ASM removed the Adani trio from the system based on factors like price, volume variance, and volatility.
Adani Total Gas and Adani Transmission will cease to be included in the MSCI India Index as of May 31. This was notified by MSCI on Thursday. worldwide fund companies frequently utilise the MSCI Global Standard Index to benchmark their worldwide equity portfolios.

Adani Transmission and Adani Total Gas are predicted to suffer losses of $201 million and $186 million, respectively, due to their exit from the MSCI India Index, as stated in a report by Nuvama Alternative & Quantitative Research. The report reveals that a total of 18 million shares from both companies will be removed from the index, with their respective weights being 0.34 and 0.31.

Adani Transmission and Adani Total Gas saw a significant drop in their share values on Friday following their exclusion from the MSCI Global Standard Index. Adani Transmission closed 3.08% lower at Rs 889, down by Rs 28.25, while Adani Total Gas settled 4.18% lower at Rs 819.30, down by Rs 35.75 on the NSE.

Additionally, Adani Green Energy's shares ended the week at Rs 896.45, down by Rs 17 or 1.87%. The Adani Group faced accusations of fraud and stock manipulation from US short-seller Hindenburg Research in a report released on January 24. Despite the allegations, the conglomerate has repeatedly denied all allegations.