MSCI Removes Restrictions on Adani Group Stocks in August 2024 Index Review

Morgan Stanley Capital International (MSCI) has announced to lift restrictions on Adani Group stocks in the August 2024 index review. In February 2023, the MSCI had freezed some adjustments to Adani Group securities.  

“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,” said MSCI in a statement. 

The New York headquartered finance company said it will begin regular implementation of corporate events for Adani stocks from September 2, 2024.   

The US short-seller Hindenburg Research released a report titled, “The largest con in corporate history”, in January 2023. The report accused Adani Group of financial wrongdoing and stock manipulation. Nearly a month later in February 2023, MSCI had to delay the implementation of weightage changes after market participants complained about its low free float.

In a statement released by the service provider then said, “MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology. This determination has triggered a free float review of the Adani Group securities.” 

Following this, the MSCI suspended the potential adjustments required to Adani Group securities and postponed the implementation of ‘non-neutral corporate events’. 

Following the Hindenburg’s first report on Adani Group in January 2023 and MSCI’s restriction, the short seller has released another report targeted SEBI chief Madhabi Puri Buch and her husband Dhaval Buch. Hindenburg accused the husband-wife duo of having held stakes in Bermuda and Mauritius based obscure funds used to siphon off funds from Adani Group firms resulting in a conflict of interest.