Adani Enterprises to be dropped from Dow Jones sustainability indices

The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, January 27, 2023. Photo: Reuters

New Delhi: S&P Dow Jones has said it will remove Adani Group's flagship firm Adani Enterprises from sustainability indices with effect from February 7 following a media and stakeholder analysis triggered by allegations of accounting fraud.

The move comes amid stock exchanges BSE and NSE putting three Adani Group companies -- Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements -- under their short-term additional surveillance measure (ASM).

The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earning ratio.

Market experts believe that putting in additional surveillance mean intra-day trading would require a 100 per cent upfront margin. The exchanges move might curb speculation and short selling in these stocks.

"Adani Enterprises will be removed from the Dow Jones sustainability indices following a media and stakeholder analysis triggered by allegations of accounting fraud," S&P Dow Jones Indices said in a statement.

It will make the changes to the Dow Jones sustainability indices, effective prior to the opening on February 7.

Shares of Adani Enterprises were trading in the positive territory on the BSE in the afternoon trade on Friday. The counter had slumped 20 per cent in the morning trade. Before that, the stock had plunged over 26 per cent on Thursday and more than 28 per cent on Wednesday.

The 10 listed Adani Group firms have faced a combined erosion of over Rs 8.76 lakh crore in the past six trading sessions.

Adani Group stocks have taken a beating on the bourses after US-based Hindenburg Research made a litany of allegations in a report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.

Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

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