The Adani Group power company has been put under the short-term Additional Surveillance Measures (ASM) framework by stock exchanges BSE and NSE for the second time. According to the stock exchanges, from Thursday (March 23), Adani Power will be in the first stage of the short-term ASM framework.

Earlier, Adani Power was placed in the short-term ASM framework on March 8 along with Enterprises and Wilmar. Due to the continuous tremendous rally, NSE had put them in the ASM framework to keep an eye on all the three stocks. Then on March 17, NSE had removed 3 companies from the ASM framework.

Ahead of Adani Power, BSE-NSE on Monday (March 20) this week moved Adani Green Energy and NewsBust India from Stage II to Stage I of the Long Term ASM Framework. Earlier both these stocks were in the second stage of long term ASM framework.

Parameters for Shortlisting Shares under ASM Framework
The parameters for shortlisting stocks under the ASM framework include high-low variation, client concentration, number of price band hits, close to close price variation and PE-ratio.

What is short term and long term ASM framework?
Short term and long term ASM are a type of monitoring. In which market regulator SEBI and market exchange BSE-NSE keep an eye on the stocks put in additional surveillance. Its purpose is to protect the interests of the investors. When a stock shows high price volatility due to manipulation or excessive trading, then those shares are put in ASM.

Adani Enterprises was also floated in ASM in February
On February 6 last month, NSE had for the first time put Adani Enterprises in the short-term ASM along with Ambuja Cements and Adani Ports due to high volatility in Adani Group stocks after the Hindenburg report came out.

Nearly a month later, on March 8, the NSE pulled Adani Enterprises out of the short-term ASM framework. However, NSE had already taken out Ambuja Cements and Adani Ports from this framework before Adani Enterprises.

Hindenburg accused the group of stock manipulation
Since the report of American short seller Hindenburg Research came out on January 24, there was a lot of volatility in the shares of Adani Group. Hindenburg accused Adani Group companies of stock manipulation and accounting fraud. However, the Adani Group has denied all of Hindenburg’s allegations.