The National Stock Exchange (NSE) issued a circular on Monday to remove Adani Enterprises out of the short-term additional surveillance measure (ASM) framework a month after a short-seller report triggered a sell-off in Adani-related entities. Along with Adani Enterprises, Ambuja Cements and Adani Ports and Special Economic Zone were also placed on the ASM framework in February but they were removed in the same month.
The removal of Adani Enterprises from the surveillance framework will come into effect on Wednesday, the circular added. In January, US-based short-seller Hindenburg Research had published a report against Adani Group, accusing it of accounting fraud and market malpractices. Following this, there was a massive selling spree of all 10 listed entities of Adani Group, resulting in the conglomerate losing over half of its market capitalisation before making a rebound on the bourses last week.
As the sell-off triggered by Hindenburg caused huge volatility in Adani-related stocks, especially the group's flagship firm Adani Enterprises, NSE moved the three above mentioned Adani stocks to its additional surveillance framework in order to safeguard investors from speculative trades.
After the continued selling off of Adani companies' shares, the Gautam Adani-led group got some relief last week when global asset management firm GQG Partners invested Rs 15,000 crore in the the conglomerate. Since then, the group's listed entities have recovered sharply, with Adani Enterpises rising 66 per cent in just 5 trading sessions.