Adani Enterprises shares in focus as Dow Jones excludes scrip from sustainability indices

S&P Dow Jones Indices said it would remove Adani Enterprises from widely used sustainability indices with effect from February 7. This may make the Adani group share less appealing to sustainability-minded funds.

The news came amid NSE’s decision to place three Adani group stocks namely Adani Enterprises, Adani Ports & SEZ and Ambuja Cements under additional surveillance measures framework.

In a brief note, S&P Dow Jones Indices said: “Adani Enterprises (XBOM: 512599) will be removed from the Dow Jones Sustainability indices following a media & stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.”

S&P Dow Jones Indices said it will make the changes to the Dow Jones Sustainability Indices, effective prior to the open on Tuesday, February 7.

Data showed the Adani group has lost Rs 8.76 lakh crore in market capitalisation in a span of mere six trading sessions, with group stock Adani Total Gas losing over $29 billion in the 6-day rout; the group’s flagship Adani Enterprises eroded $26.17 billion in market value during the same period.

To curb speculations, NSE on Thursday said three Adani group stocks namely Adani Enterprises, Adani Ports and Ambuja Cements will require 100 per cent margin to trade in their shares.

“There shall be Additional Surveillance Measures (ASM) on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc,” said NSE on its website to explain the measure.

Ealier, Citigroup Inc’s wealth arm stopped accepting Adani Group securities as collateral for margin loans. The US lender’s move follows a similar decision by Credit Suisse Group. The private banking arm of Credit Suisse AG has stopped accepting bonds of some of the group entities of Adani Group — Adani Ports & SEZ, Adani Green Energy, and Adani Electricity Mumbai – as collateral for margin loans.

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