Adani stocks: MSCI lifts curbs in August 2024 index review

The global index aggregator Morgan Stanley Capital International (MSCI) has announced removal of restrictions on Adani Group stocks in its August 2024 index review. The freeze on adjustments to Adani Group securities was done by MSCI in February 2023.

“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,” a statement issued by the New York-based index aggregator declared.

In further relief to the Adani Group, MSCI added that it would start to regularly implement corporate events for Adani stocks September 2, 2024, onward.

“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),” the company statement said.

FLASHBACK 2023

In January 2023, the US-based short-seller Hindenburg Research published a report titled The Largest Con In Corporate History that accused the Adani Group of financial misconduct and manipulation. A month later in February 2023, even as Adani Group shares slumped, MSCI had decided to stay the implementation of weightage changes. Subsequently, MSCI had suspended any essential adjustments to Adani Group securities and also postponed implementation of non-neutral corporate events.

Back then, the index aggregator had said in a statement that the characteristics of certain investors in Adani Group stocks created sufficient uncertainty to exclude them from being considered as part of the free float. Owing to this, MSCI suspended “potential changes to the number of shares for the affected securities” and “deferred the implementation of non-neutral corporate events, subject to review”.

MSCI has said that it would continue keeping track of securities of the Adani Group, including the ones related to free float.