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.