9 Adani Group listed companies experienced a drop of around 60% after Hindenburg Research
The Minister of State in Ministry of FinanceShri Pankaj Chaudhary in a written response to the question posed in Parliament He stated: “9 publicly traded companies in the Adani Group witnessed a drop of around 60% after Hindenburg Research.”
He Securities and Exchange Board of India (SEBI), as the legal regulator of securities markets, is mandated to establish regulatory frameworks for stable operations and development of securities markets, including investor protection. In accordance with its mandate, it conducts investigations into any alleged violation of its Regulations by any market entity. Accordingly, he is investigating the marketing allegations against the Adani group of companies.
The nine listed companies that form part of Adani Group experienced a decrease of about 60% of market capitalization from January 24, 2023 to March 1, 2023 following the report published by Hindenburg Research. These companies are not part of Sensex and have a combined weight of less than 1% in Nifty.
The volatility in the shares of these companies has not had a significant impact at a systemic level. The Nifty 50 declined about 2.9% in the month of January 2023 and about 4.9% in the two-month period of January and February 2023.
The price of individual stocks and variations, overvaluation or undervaluation, and the price risks that investors take are determined by the dynamics of demand and supply. The regulatory framework provides for surveillance mechanisms that are activated in cases of volatility in the share prices of specific companies.
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