Amid ongoing controversy over the 2nd Hindenburg report linked to Adani Shares, MSCI Removed the restrictions it had put earlier on Adani Stocks.
In a major relief to Adani shareholders, Global index provider Morgan Stanley Capital International (MSCI) has announced the removal of the freeze on Adani Group stocks, a move has come after the recent controversy over Hindenburg 2nd report on Adani & SEBI Chairperson linkage.
MSCI will implement these changes from today, i.e. August 2024. The adjustments will include updates to the Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF) for Adani Group and associated securities.
According to the announcement, these changes will take effect at the close of August 30 and will be fully implemented by September 2. MSCI clarified that it will also resume the regular implementation of corporate events for these securities from September 2 onwards.
MSCI On Removal Of Freeze On Adani Stocks
“MSCI clarifies that starting from the August 2024 Index Review, MSCI will implement the index review changes, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) of Adani Group and associated securities that have been previously postponed.’’
MSCI also stated that it will resume the regular implementation of corporate events for these securities effective September 2, 2024. The proforma FIF and DIF for these securities are announced along with the August 2024 Index Review announcement. The changes will be implemented as of the close of August 30, 2024 (effective September 2, 2024).
Despite lifting the freeze, MSCI emphasized that it will continue to closely monitor the Adani Group and associated securities, particularly concerning their free float status.
The index provider stated that it would issue further communication if necessary, indicating that the group remains under observation.
MSCI Added 8 Indian Stocks In List
In addition to the updates on Adani stocks, MSCI also announced the inclusion of eight new securities in its MSCI India Index.
Dixon Technologies (India), Oil India, Oracle Financial Services Software, Prestige Estates Projects, Rail Vikas Nigam, Vodafone Idea and Zydus Lifesciences are the additions in the MSCI India Index, according to an announcement by index compiler MSCI.
The changes in constituents for the MSCI Global Standard Indexes will take place as of the close of August 30, 2024, as per the announcement. Bandhan Bank would move out from the MSCI India Index, it announced.
Shares of Rail Vikas Nigam jumped 4.61 per cent, Dixon Technologies climbed 3.29 per cent, Oil India went up by 3.21 per cent, Oracle Financial Services Software (1.95 per cent) and Prestige Estates (1.46 per cent) on the BSE.
However, Vodafone Idea and Zydus Lifesciences were trading lower.
(With Inputs From ANI)
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)