Adani Ports, Ambuja Cements to move out of ASM framework from next week
The National Stock Exchange (NSE) has removed two Adani group stocks — Adani Ports & Special Economic Zone and Ambuja Cements — from the short term Additional Surveillance Measure (ASM) framework. The move will become effective from 13th February 2023 i.e. from Monday next week. The NSE had put these two Adani stocks under ASM framework on 3rd February 2023 after huge sell off in Adani group stocks in the wake of Hindenburg Research report raising concern over the debt positioning of Adani group companies. However, Adani Enterprises shares would continue to remain under the short term ASM framework.
What this move mean for these Adani stocks?
Moving out of the ASM framework would mean lesser stringent rules like no 100 per cent margin for intraday traders means no leverage for intraday traders. Pledging of stocks is also not allowed if the stock is under ASM framework. However, corporate actions like dividend, bonus shares, stock split, etc. won’t get impacted by ASM framework.
As NSE has removed Adani Ports and Ambuja Cements out of the ASM framework, this means above mentioned stringent measures won’t be applicable on these Adani group stocks. The move may lead to spurt in trade volume of these Adani stocks as leverage will now become available on Adani Ports and Ambuja Cements shares when stock market reopens on Monday after two days week off.
As per the joint surveillance meeting of exchanges and SEBI, following margins would be applied on derivative stocks under short term ASM framework:
Stage 1: 50 per cent of existing total margins, whichever is higher, subject to maximum rate of margins capped at 100 per cent.
Stage 2: 100 per cent or existing total margins whichever is higher, subject to maximum rate of margins capped at 100 per cent.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.