Monitoring action for stocks based on transparent system: NSE
Stock market The National Stock Exchange (NSE) has justified the decision to take out three Adani group companies from short-term monitoring.
Stock market The National Stock Exchange (NSE) has justified the decision to take out three Adani group companies from short-term monitoring. Rejecting the opposition’s criticism, it said monitoring action for all stocks is based on a transparent system. These things happen automatically under pre-declared rules and do not involve any human intervention.
After the NSE and BSE last week announced their decision to keep three Adani Group companies — Adani Enterprises, Adani Power and Adani Wilmar — out of the short-term Additional Monitoring Measures (ASM), the Congress questioned whether stock market regulator Securities and Exchange Board of India Why is the board (SEBI) in their favor and why is it cautioning investors to invest in such stocks.
Congress general secretary Jairam Ramesh also said that global index providers like MSCI, S&P, Dow Jones and FTSE Russell also reviewed the position of Adani Group shares in their stock indices, while NSE stood out from the rest with its lowest level since March 20. Five Adani group companies have been included in at least 14 indices. NSE and BSE also decided to exclude shares of two Adani group companies – Adani Green Energy and NDTV – from the first phase of long-term Additional Monitoring Steps (ASM) framework from Monday.
NSE said in a detailed statement on Sunday that the monitoring steps taken on the shares are as per the automated and transparent system under the rules. These things happen automatically under pre-declared rules and do not involve any human intervention. Apart from this, the inclusion and exclusion of stocks from the index at fixed intervals is also as per the rules, according to the statement. All this happens according to pre-announced, automated and transparent policies.
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