National Stock Exchange lowers price band on Adani Green Energy and Adani Transmission

The NSE had revised the price bands of both companies to 10% from 20% last week.

Stock exchanges set the circuit limits to prevent large movements in the price of stocks in a very short time.

Shares in billionaire Gautam Adani’s companies have been in free-fall since a 24 January critical report by Hindenberg Research, with group cumulative market losses now topping $110 billion, sparking fears of wider financial contagion.

Opposition parties, who last week called for a parliamentary panel to investigate the saga and disrupted proceedings.

Protesters on Monday also expressed anger about investments made by state-backed Life Insurance Corporation (LIC) and State Bank of India (SBI) in the Adani Group.

Adani has rejected in detailed rebuttals the Hindenberg report’s allegations of stock manipulation, use of tax havens and criticism that it had unsustainable debt.

MeanwhileAdani Group, which has in recent weeks suffered a brutal share selloff following the release of a U.S. short-seller report, remains eligible for the CEMBI, JACI and JESG indices, said JP Morgan in a note on Monday.

“Per current index rules, Adani Group companies remain eligible for inclusion in CEMBI, JACI and JESG indices,” JP Morgan said in the note.

“We continue to monitor publicly available information and liquidity of the securities, and in case of market disruption or confirmed default event.”

Adani Group’s businesses include ports, power generation, transmission and renewable energy, among others, with a total notional of S$7.7 billion in the CEMBI and JACI indexes.

The Corporate Emerging Market Bond Index series (CEMBI) tracks U.S. dollar denominated debt issued by emerging market corporations. The J.P. Morgan Asia Credit Index (JACI) tracks the total return performance of the Asia fixed-rate dollar bond market.

The JP Morgan ESG Global Corporate Index (JESG GCI), an integrated environmental, social, and governance corporate benchmark covering Investment Grade and High Yield markets.