Trouble for the Adani Group isn't receding ever since the port to power conglomerate was hit by allegations of fraud and market manipulation by Hindenburg Research. Following that, strongly worded statements didn't help Adani attract common retail investors for its follow on share sale, which it had to cancel despite being fully subscribed thanks to NIIs and existing big ticket investor IHC. Now as market regular Securities and Exchange Board of India (SEBI) is reportedly investigating possible irregularities in the FPO, three Adani firms have been put under additional surveillance by the National Stock Exchange.
The NSE has brought Adani Enterprises, Adani Ports and Ambuja Cements, under the Additional Surveillance Measure (ASM) framework. This has been done following price fluctuation, shifting volumes and volatility of the stocks. This will also lead to restrictions on the trade of these three stocks, which may affect Adani Group further.
The exchange also maintained that the move is only meant to enhance surveillance of the stocks, and isn't an adverse action against the companies or conglomerate. Earlier in the day, Gautam Adani had also cited volatility as a reason for withdrawing the FPO for Adani Enterprises, the group's flagship firm.
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