India’s regulator says it is putting in place additional supervisory measures after more than $100 billion in losses from Adani Group

Over the weekend, India’s stock market regulator said it was paying close attention to post-sale monitoring of Adani Group companies, which ballooned to more than $100 billion in market capitalization losses.

The Securities and Exchange Board of India, or SEBI, has issued a statement to reassure markets that it has addressed the volatility in shares of companies linked to Indian conglomerate Adani Group, with a set of new supervisory measures.

In a statement on Saturday, SEBI said that in light of the “unusual movement in the stock prices of a trading conglomerate”, it would put in place publicly available monitoring measures to deal with excessive volatility in certain shares.

“SEBI is committed to upholding market integrity and to ensuring that markets continue to have the appropriate structural strength to operate uninterrupted, transparent and efficient, as they have to date.” added the regulator.

This follows Friday’s decision by the National Stock Exchange of India and the Mumbai Stock Exchange to place three Adani-linked companies under short-term Supplemental Monitoring Measure (ASM) framework – Adani Enterprises 512599,
Adani Ports and Special Economic Zone 532921,
and Ambuja Cements 500425,

“The pre-selection of securities under ASM is purely due to market surveillance and should not be construed as adverse action against the company/entity concerned,” the National Exchange of India said in a statement on Thursday. He added that trading the above stocks may require 100% initial margin, effective Monday.

Shares of Adani’s flagship company, Adani Enterprises, fell 1% on Monday.

Shares of Adani have seen extraordinary volatility in the past week since US short seller Hindenburg Research released a report alleging fraud and stock manipulation. Adani Group’s losses have climbed to $113 billion since the report.

Read: TotalEnergies reveals $3.1 billion exposure to Adani


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