Adani Group’s 2 stocks placed under ASM stage-1 category: Here’s what it means for shareholders | Stock Market News

Adani Group’s two stocks have been put under the first stage of the long-term additional surveillance measures (ASM) on the Bombay Stock Exchange (BSE) after the recent US indictment of Chairman Gautam Adani and others on alleged bribery charges.  

Adani was allegedly indicted in New York, US, over his role in the multibillion-dollar bribery and fraud scheme. According to US authorities, the chairman of the ports-to-power conglomerate and seven other defendants agreed to pay Indian officials over $250 million in bribes to obtain solar contracts.

ASM is an initiative by the Securities and Exchange Board of India (SEBI) and exchanges in which securities are moved to either a short-term or long-term framework to protect investors’ interests. Adani Group’s stock has been put under the ASM framework due to its high volatility after the bribery charges.

In the short-term ASM, there are two stages. Stocks are retained in each stage as applicable for a minimum of 5/15 trading sessions and are eligible for review from the 6th/16th trading day onwards. The securities are further monitored and moved in trade-to-trade (T2T Segment), and 100 per cent of traded value will get blocked as margins, meaning no intraday leverage is given. 

The parameters for shortlisting securities under the ASM framework include high-low variation, client concentration, number of price band hits, close-to-close price variation, and price earning ratio. The parameters for shortlisting securities under the ASM framework include high-low variation, client concentration, number of price band hits, close-to-close price variation and price earning ratio.