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The National Stock Exchange (NSE) has removed two Adani Group stocks – Adani Ports & Special Economic Zone and Ambuja Cements – from the Short-Term Additional Supervisory Measures (ASM) framework. The move will take effect on February 13, 2023, so next Monday. The NSE had placed these two Adani stocks under the ASM framework on February 3, 2023 following a massive sell-off in Adani group stocks in the wake of the Hindenburg Research report raising concerns about the debt position of Adani group companies. However, shares of Adani Enterprises would remain under the near-term ASM framework.
What does this move mean for these Adani stocks?
Leaving the ASM framework would mean less strict rules, like no 100 percent margin for intraday traders means no leverage for intraday traders. Pledge of inventories is also not allowed if the inventories are under ASM framework. However, corporate actions such as dividends, bonus shares, stock split, etc. are not affected by the ASM framework.
As NSE has removed Adani Ports and Ambuja Cements from the ASM framework, this means that the above strict measures do not apply to these Adani group shares. The move may lead to an increase in the trading volume of these Adani stocks as leverage will now become available on Adani Ports and Ambuja Cements stocks when the stock market reopens on Monday after two days of week off.
According to the joint oversight meeting of exchanges and SEBI, the following margins would be applied to derivative stocks under the near-term ASM framework:
Stage 1: 50 percent of existing total margins, whichever is higher, subject to the maximum margin percentage capped at 100 percent.
Stage 2: 100 percent or existing total margins, whichever is greater, subject to the maximum margin percentage capped at 100 percent.
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