After shares are placed under a short-term ASM framework, the price of Adani Enterprises’ stock drops by over 3%


Adani Enterprises’ stock price fell just over 2.7% on Tuesday after the National Stock Exchange (NSE) placed the company’s shares under its short-term additional surveillance mechanism (ASM). The company’s stock had hit a new high of Rs 208.70 the previous day, however on Tuesday it ended the day’s trading at Rs 202.90 on the NSE.

The NSE said that Adani Enterprises was placed under the ASM framework following an increase in offshore unhedged foreign equity inflow activity in the stock. The exchange had also noted that the stock constitutes 3.36 % of the total foreign portfolio investments in the Indian markets.

The NSE has been using ASM since 2011 to identify scrips that show an unusual rise in trading activity. Under the ASM, a stock must fulfill certain criteria to remain listed. These include the liquidity of the shares, the compliance of the listed entity to the regulations, and the performance of the stock over a certain period of time.