Adani Group’s two more stocks- Adani Transmission and Adani Total Gas have been put under the long-term additional surveillance mechanism (ASM) framework. The order will come into effect from Monday, March 13, the circular said.
Both BSE and National Stock Exchange (NSE) have issued two separate circulars in this matter. The bourses also put NDTV and Adani Green Energy under the long-term ASM framework Stage – II, the circulars said.
The move also comes close on the heels of the two exchanges putting Adani Group companies including Adani Enterprises, Adani Power and Adani Wilmar under the short-term additional surveillance measure (ASM) framework Stage – I from Thursday, March 9.
In order to safeguard investors from speculative or malicious trade and to protect their interests, exchanges move them to short-term or long-term ASM framework during the highly volatile instances. The recent sharp spurt in the stock prices of the Adani Group companies has alarmed the exchanges.
In the short term ASM, there are two stages. Stocks are retained in each stage as applicable for a minimum period of 5/15 trading sessions and are eligible for review from 6th/16th trading day onwards. A total of 29 companies are put under short term ASM framework, whereas 88 have been put under long term ASM.
Securities under ASM are further monitored and moved in trade-to-trade (T2T Segment) and 100 per cent of traded value will get blocked as margins, which means that no intraday leverage is given. However, MIS is still allowed for F&O stocks under Stage I of short term ASM.
ledging of stocks under the ASM category is not allowed. If a stock that is pledged is moved under ASM, collateral margins will no longer be provided, and the collateral value will be reduced by the value of collateral received against the stock.
A number of Adani group companies have completed the entire prepayment of margin-linked share-backed financing, amounting to $2.15 billion, ahead of the committed timeline of March 31, 2023. Adani group has also prepaid the $500 million facility taken for Ambuja acquisition financing, in line with commitment to increase equity contribution.
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