India's NSE puts trades in some Adani firms under additional watch (updated)

Monarch Networth Capital

02/02/2023 16:13

(Adds details on the mechanism, circuit breaker, background)
       BENGALURU, Feb 2 (Reuters) - India's National Stock
Exchange on Thursday placed on additional surveillance shares of
Adani Enterprises  ADEL.NS , Adani Ports  APSE.NS  and Ambuja
Cements  ABUJ.NS , in a bid to prevent speculation and short
selling.
    Investors will have to pay 100% upfront margin to trade in
these shares, the exchange said, following a rout in the shares
of companies of Adani Group after a scathing report by U.S.
short-seller Hindenburg. 
    These stocks will also have a 5% daily price band, or the
range within which a stock can be traded for that day.
    The NSE also placed Monarch Networth Capital  MONR.NS , one
of the 10 underwriters of Adani Enterprises'  ADEL.NS  botched
share sale, under additional surveillance.
    The Ahmedabad-based brokerage was responsible for "non
institutional marketing", according to the Adani share sale
document. Hindenburg had flagged Monarch in its research report
for conflict of interest.
    Monarch was not immediately available for comment outside
regular business hours.
    Last year, Adani Group acquired Ambuja Cements Ltd  ABUJ.NS 
and ACC  ACC.NS  from Holcim AG  HOLN.S  to enter the business.
    The group has denied the short-seller's accusations, saying
the allegation of stock manipulation had "no basis" and stemmed
from an ignorance of Indian law.
    Market losses in the group companies swelled to more than
$100 billion on Thursday, a day after its flagship company
abandoned the fully subscribed $2.5 billion stock offering.
    Adani Enterprises tumbled 27%, closing at their lowest level
since March 2022. 
    Other group companies also lost more ground. Adani Ports and
Special Economic Zone shed nearly 7%, while Ambuja closed up
5.5% after losing nearly 17% in the previous session.
    Adani Group did not immediately respond to a request for 
comment on the exchange's latest decision.
 (Reporting by Jayshree in Mumbai, Nallur Sethuraman in
Bengaluru; Editing by Dhanya Ann Thoppil and Sriraj Kalluvila)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))