Adani stocks get a boost as BSE and NSE lift ASM restrictions

In a major relief for Adani Group shareholders, three of its stocks have been removed from the additional surveillance measure (ASM) framework by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) effective from May 15, 2023. The stocks are Adani Total Gas, Adani Transmission and Adani Green Energy.

The ASM framework is a mechanism devised by the Securities and Exchange Board of India (SEBI) and the exchanges to monitor and regulate the trading activity of stocks that exhibit abnormal price movements or volatility. The stocks under the ASM framework are subject to higher margins, lower circuit filters and other restrictions to protect the interests of investors and ensure market integrity.

The removal of the three Adani stocks from the ASM framework is seen as a positive development for the group, which has been facing allegations of fraud and stock manipulation by a US-based short seller Hindenburg Research. The group has denied all the charges and said it is fully compliant with all regulatory norms.

The three stocks have also shown strong performance in the recent past, with Adani Total Gas gaining over 500% in the last one year, Adani Transmission surging over 400% and Adani Green Energy rising over 300%. The stocks have also witnessed robust growth in their revenues and profits in the last quarter.

However, two other Adani stocks – Adani Enterprises and Adani Ports and Special Economic Zone – are still under the short-term ASM framework since February 3, 2023. These stocks are also expected to exit the ASM framework soon, as they have met the criteria for exclusion.

The exit of the three Adani stocks from the ASM framework is likely to boost investor confidence and attract more foreign institutional investors (FIIs) to the group. The group has ambitious plans to expand its presence in various sectors such as renewable energy, gas distribution, airports, data centers and defense.

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