SEBI on Adani Controversy: 'Measures in place to address excessive volatility in specific stocks'
SEBI has clarified its stand on the ongoing controversy involving the Adani Group, stating that it is committed to ensuring market integrity'.
FollowMarket regulator Securities and Exchange Board of India (SEBI) has clarified its stand on the ongoing controversy involving the Adani Group, stating that it is committed to ensuring market integrity'.
SEBI said that unusual price movement in the stocks of a business conglomerate had been observed during the past week. 'As part of its mandate, SEBI seeks to maintain orderly and efficient functioning of the market and has put in place a set of well defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks,' the market regulator said.
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SEBI has consistently followed this approach on entity-level issues and would continue to do so in future as well, SEBI added.
SEBI, however, stopped short of clearly mentioning whether it is conducting any probe into the matter or not.
On a longer-term basis also, Indian markets have been viewed positively by investors, SEBI said, adding that a cross-country comparison of dollar-adjusted market returns with both peer and developed countries during the past three years to date places the Indian market as a positive outlier.
Adani group stocks have been taking a hammering at the stock market after New York-based activist short-seller Hindenburg Research levelled a slew of allegations, claiming widespread share price manipulation and fraudulent transactions at the Gautam Adani-led group.
Even though the Adani group dismissed the allegations and reiterated that it had complied with Indian laws and disclosure requirements, the stocks of the group firms took a massive hit.Â
In just six trading sessions, the ten listed Adani group firms faced a combined erosion of over Rs 8.5 lakh crore. The controversy even forced Adani Enterprises to withdraw a Rs 20,000 crore Follow-on Public Offer (FPO).
The issue has become a political hot potato for the government as well. Several Opposition leaders have sought a Joint Parliamentary Committee probe. Parliament proceedings have been disrupted over the issue since after the budget 2023 presentation.Â
For now, the Bombay Stock Exchange and the National Stock Exchange have placed three Adani group companies -- Adani Enterprises, Ambuja Cements and Adani Ports and Special Economic Zone -- under their short-term additional surveillance measure (ASM). This is aimed at curbing speculation and short-selling in these stocks. Intra-day trading in these stocks would require a 100 per cent upfront margin.
Also Read:Â Adani vs Hindenburg row: Banking sector resilient and stable, says RBI
