National Stock Exchange on Monday removed Adani Enterprises Ltd, the flagship arm of the embattled Adani Group, from additional surveillance framework a month after imposing it.
Last month, NSE had imposed ASM on three Adani Group firms — Adani Enterprises, Adani Ports, Ambuja Cements — in the wake of US short seller Hindenburg Research’s scathing report leading to volatility in these stocks. However, a few days later Adani Ports and Ambuja Cements were removed from the ASM framework.
Hindenburg’s report alleged an improper use of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about high debt and the valuations of the listed Adani companies, which Adani Group vehemently denied,
On Monday, Adani Enterprises’ scrip on NSE closed 5.5% higher at Rs 1,983.
During instances of high volatility in stocks, exchanges move stocks to short-term or long-term additional surveillance framework to safeguard investors from short selling or speculative trades.