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The SEBI (Securities and Exchange Board of India) has ordered the implementation of Additional Surveillance Margin (ASM) framework on Adani

Rewa Today6 February 20232 Mins read68 Views

 The SEBI (Securities and Exchange Board of India) has ordered the implementation of Additional Surveillance Margin (ASM) framework on Adani Enterprises, Adani Ports and Ambuja Cements with effect from February 3, 2023. This will significantly increase the margin requirement for the stock trading of these companies to 100%.This is an attempt by SEBI to discourage speculation in the stock markets and reduce short selling activity by investors. The SEBI regulation requires that traders must maintain a higher margin amount when trading stocks under ASM framework as compared to other stocks. This means that traders need to have more funds available at their disposal in order to trade these stocks effectively.

With this new SEBI regulations coming into effect, it is likely that the Adani stocks will be more stable as traders will be less prone to speculate or short sell them. SEBI has also said that this move is intended to protect small investors from the risk of losses in volatile markets and encourage long-term investments.
Overall, SEBI’s decision to place Adani Enterprises, Adani Ports, and Ambuja Cements under ASM framework has been widely appreciated by the market as it will help reduce speculation and short selling of these stocks in the near term. This should result in increased stability for these stocks going forward. Additionally, SEBI’s stance is seen as a positive for small investors as it will protect them from the risk of losses in volatile markets. The move should also encourage more long-term investments in these stocks. It remains to be seen how this move will impact stock prices in the future. At present, Adani Enterprises, Adani Ports and Ambuja Cements are trading at all-time highs due to their strong performances over the past few months.

However, with SEBI’s decision coming into effect, these stocks may become less prone to speculation or short selling which could result in more stable share prices going forward. Overall, SEBI’s move can be seen as a positive step towards protecting small investors from the risks associated with volatile markets. In addition, SEBI has also directed all stock exchanges to keep a close watch on any abuse of market related information or manipulation of share prices in these stocks going forward. This should help ensure that the investors get fair and transparent access to prices at all times. SEBI’s move is a welcome step towards more effective regulation of Indian stock markets and investor protection. It will be interesting to observe how this move impacts stock prices in the coming days, months, and years. Only time will tell if SEBI’s decision was successful in curbing speculation and short selling while protecting small investors from unwanted risk. 


More information can be found here: https://www.sebi.gov.in/legal/circulars/feb-2021/additional-surveillance-margin-for-select-securities_49052.html 
Adani Enterprises, Adani Ports, and Ambuja Cements are three of the prominent companies included in SEBI’s ASM framework
. As a part of this new regulation, investors will now have to pay 100% margin when they buy or sell shares of these companies on the National Stock Exchange (NSE). In addition to providing financial protection for small investors, SEBI hopes that its decision will also reduce the amount of speculation and shortselling that has been taking place in these stocks over the past few months.