Relief for Adani Group: MSCI defers decision on stock index weighting of Adani Total Gas and Adani Transmission
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New Delhi : The Hindenburg Research report has brought some respite to the Adani Group, which has been facing a continuous fall in its shares after decades of allegations of stock manipulation and accounting fraud. Morgan Stanley Capital International (MSCI), which provides financial indices, has postponed the decision on the stock index weighting of Adani Total Gas and Adani Transmission, two companies of Adani Group, till May. MSCI has cited the immediate impact on the shares due to the price cap system as an important reason behind postponing the decision. Earlier, as per the decision taken by MSCI, the change in stock index weightage was to come into effect from this month, but now it has been postponed till May.
Two securities included in the index review
MSCI (Morgan Stanley Capital International) said in a statement that the actual position of these two securities in the February 2023 index review will be reflected in the MSCI index product file from February 16. The global index provider cited possible duplication due to impact from price cap mechanism in two Adani Group companies as the main reason behind the delay.
stock lower circuit
MSCI said in a statement that it has been decided to defer the previously announced plan due to potential duplication issues due to the price ceiling regime in specified securities belonging to the Adani Group. Under this, it has been decided to postpone the review of Adani Total Gas and Adani Transmission till May 2023. In the last six trading sessions, shares of Adani Transmission and Adani Total Gas have reached their lower circuit.
Review on giving free float status to shares
According to MSCI, there is also a matter of uncertainty regarding the key figures along with the possibility of duplication. Earlier, MSCI had said that it is reviewing the grant of ‘free float’ status to some shares of Adani Group companies. According to MSCI, ‘free float’ means how many shares are available for purchase by global investors in the market in proportion to the shares available with all participants in the market.
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