Now two companies of Adani Group have been put in the first stage of long term Additional Surveillance Measures (ASM) framework by the stock exchanges BSE and NSE. According to the stock exchanges, from Sunday (March 18) Adani Green Energy and NewsBust India will move to the first stage of the long term ASM framework. Currently both these stocks were in the second stage of long term ASM framework.

BSE and NSE have said in circular that Adani Green Energy and NewsBust India will be moved from Long Term ASM Framework Stage II to Stage I with effect from March 20. And last week Adani Green Energy and NewsBust India were shifted from Stage I to Stage II. 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.

BSE and NSE said that Adani Green Energy and NewsBust India have fulfilled the criteria to be included under Long Term Additional Surveillance Measures. The exchange said, ‘The margin rate will be applicable at 100% on all open positions from March 22, 2023 to March 21, 2023. The new positions will be created from 22 March 2023. Also, the lower price band will be applicable from March 20, 2023. ,

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.

NSE removed 3 group companies from ASM framework a day ago
A day ago, NSE took out 3 companies of Adani Group from the short-term ASM framework from 17 March. NSE had placed Adani Enterprises, Power and Wilmar in the short-term ASM framework on March 8. NSE had placed all the three stocks in the ASM framework to keep an eye on them due to the continuous tremendous rally. Then Adani Enterprises was placed in the ASM framework for the second time.

Adani Green Energy closed 5.00% higher at Rs 816 on Friday.
Adani Green Energy closed at Rs 816, up 5.00% on the last trading day of the stock market i.e. Friday (March 17). NewsBust India has fallen by 1.08% to Rs.206. On the other hand, the shares of Adani Enterprises, the flagship company of the group, closed at Rs 1,874, up nearly 1.64%. On the other hand, Adani Wilmar rose by 1.63% to Rs 427 and Adani Power closed at Rs 199 with a gain of 0.55%.

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.