India’s stock market regulator over the weekend said it devote extra attention to surveillance after the sell-off in Adani Group companies that has swelled to more than $100 billion in market cap losses.
The Securities and Exchange Board of India, or SEBI, issued a statement to reassure the markets that it has addressed the stock volatility from companies linked to Indian conglomerate the Adani Group, with a set of new surveillance measures.
In a
statement posted on Saturday, SEBI said in light of “unusual price movement in the stocks of a business conglomerate”, it would place publicly available surveillance measures to address excessive volatility in certain stocks.
“SEBI is committed to ensuring market integrity and to ensuring that the markets continue to have the appropriate structural strength to function in an uninterrupted, transparent and efficient manner as has been the case so far,” the regulator added.
That follows the move on Friday by the National Exchange of India and Mumbai Stock Exchange to put three Adani-linked companies under a short term additional surveillance measure (ASM) framework – Adani Enterprises
512599,
-0.74%,
Adani Ports and Special Economic Zone
532921,
+9.46%
and Ambuja Cements
500425,
+1.54%.
“The shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company/entity,” said the National Exchange of India in a statement on Thursday. It added that trading on the above stocks may require 100% upfront margin, effective from Monday.
Shares in Adani’s flagship firm Adani Enterprises slipped 1% on Monday.
Adani stocks have seen extraordinary volatility in the last week since U.S. short seller Hindenburg Research published a report alleging fraud and stock manipulation. The Adani Group’s losses have ballooned to $113 billion since the report.
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