Adani Crisis / SEBI's big statement on Adani Group, said- monitoring measures are being taken

Adani crisis: Market regulator SEBI has given a big statement amidst growing controversy over the fall in Adani Group's shares. SEBI said that it is committed to ensure fairness, efficiency and all necessary monitoring in the stock market along with maintaining its strong fundamentals. The market regulator said that measures are being taken to deal with excessive volatility in specific stocks.

SEBI said in a statement without naming the Adani Group that last week there has been a big fluctuation in the price of shares of a business group. Officials confirmed that this statement has been issued in view of the Adani case only.

Adani Group's three companies in ASM framework

The Securities and Exchange Board of India (SEBI) said in the statement, SEBI under its government order wants to maintain the orderly and efficient functioning of the market. There are well-defined, publicly available monitoring mechanisms (ASM Framework) to deal with extreme volatility in a particular stock. According to the statement, this system gets activated automatically under certain conditions when there is a fluctuation in the prices of any share.

Stock exchanges – BSE and NSE have placed three companies of Adani Group – Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements – under their short-term Additional Monitoring Measures (ASM). This means that 100 per cent upfront margin will be applicable for 'intra-day trading' to prevent speculation and 'short-selling' in these shares.

Sebi said that after all specific cases are brought to its notice, the regulator examines them as per the extant policies and takes appropriate action.