Adani Ports, Ambuja Cements to exit ASM framework from next week

 

NSE has removed Adani Ports and Ambuja Cements from the short term ASM framework and the decision will be effective from 13 February 2023

The National Stock Exchange (NSE) has removed two Adani Group stocks - Adani Ports and Special Economic Zone and Ambuja Cements - from the short-term Additional Monitoring Measures (ASM) framework. This step will be effective from 13 February 2023 i.e. next week Monday. NSE placed these two Adani scrips under the ASM framework on February 3, 2023, following a massive selloff in Adani group shares in the wake of the Hindenburg Research report raising concerns over the debt position of Adani group companies. However, the shares of Adani Enterprises will continue to be under the short term ASM framework.

What does this move mean for Adani shares?

Exiting the ASM framework would mean less stringent rules like no 100 per cent margin for intraday traders means no leverage for intraday traders. Pledging of shares is also not permitted if the stock is under the ASM framework. However, corporate actions such as dividends, bonus shares, stock splits etc. will not be affected by the ASM framework.

Since NSE has taken Adani Ports and Ambuja Cements out of the ASM framework, it means that these Adani Group stocks will not attract the above mentioned stringent measures. The move could lead to a spurt in the trading volume of these Adani shares as leverage will now be available on Adani Ports and Ambuja Cements shares when the stock market reopens on Monday after a two-day weekly close.

As per the joint monitoring meeting of exchanges and SEBI, the following margins will be applicable on derivative stocks under the short term ASM framework:

Step 1: 50 per cent of the existing total margin, whichever is higher, subject to a maximum rate of margin of 100 per cent.