Adani Enterprises to be removed from Dow Jones Sustainability Indices

New Delhi: Adani Enterprises will be removed from the Dow Jones Sustainability Indices, prior to open on February 7, following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud, S&P Dow Jones said Friday.

On Thursday, National Stock Exchange (NSE) put three Adani stocks -- Adani Enterprises, Adani Ports, and Ambuja Cements --  under the additional surveillance measure (ASM) framework from February 3, 2023.

S&P Dow Jones Indices in a note said Adani Enterprises would be removed from the indices following a media and stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.

This has added to the trouble for Gautam Adani-led Adani Group following an accusation of stock manipulation and fraud by the Hindenburg Research report.

On Wednesday, Citigroup's wealth management division stopped accepting Adani Group securities as collateral for margin loans. 

Credit Suisse Group has also made a similar move. 

A Reuters report also revealed a probe launched by India’s stock market regulator Sebi ​​against Adani Group companies.

Meanwhile, shares of Adani Enterprises tumbled over 26 per cent on Thursday, a day after the firm said it has decided not to go ahead with its Rs 20,000-crore Follow-on Public Offer (FPO) and will return the proceeds to investors. The counter had plunged more than 28 per cent on Wednesday.

Most of the other group firms also declined for the sixth day in a row on Thursday and 10 listed Adani Group firms have faced a combined erosion of over Rs 8.76 lakh crore in past six days.

Adani Group stocks have taken a beating on the bourses after US-based Hindenburg Research made a litany of allegations in a report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group. Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.