NSE moves 2 more Adani stocks to stage-II long-term surveillance frame

Earlier this week, the exchange had moved Adani Green Energy and New Delhi Television to the stage-II surveillance from stage-I.

During instances of high volatility in stocks, exchanges move them to short-term or long-term additional surveillance framework to safeguard investors from speculative trades.

Adani Group stocks have been witnessing huge swings for over a month ever since the controversial report against the group was released by US-based short-seller Hindenburg Research.

After clocking gains earlier this week following the investment by GQG Partners and repayment of shares-backed loans, shares of some of the group companies have headed back south.

Gautam Adani’s flagship company Adani Enterprises has lost 11% in two sessions after rallying for six preceding sessions, but Adani Transmission and Adani Total Gas are locked in the upper circuit of 5% for 7 straight sessions.

In these 7 sessions, both Adani Total Gas and Adani Transmission have gained more than 40%.There are 2 stages in which securities are added and moved under the long-term surveillance framework by exchanges.

Under stage I, shares are placed under the price band of 5% or lower, whichever applicable, and 100% margin is levied on intraday trade.

Under stage II, the shortlisted securities are further monitored on a “pre-determined” objective criteria, and are then moved to trade-for-trade settlement once the criteria is satisfied.

The volatile swings in the stocks of the group since late January has prompted the exchanges to put them under additional surveillance and safeguard investors from any major losses.

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