Morgan Stanley Capital International (MSCI) has reportedly postponed the implementation of indexing weighting changes for two Adani Group companies’ stocks. As per updates, both Adani Total Gas and Adani Transmission’s reviews have been postponed by MSCI in response to the Hindenburg Research report rout.
According to a Reuters report, in a statement, MSCI said that the reversal of the updates to these Adani Group companies (Adani Gas and Adani Transmission) in the February index review, will now be reflected in the MSCI Index Product files which will start from February 16, 2023.
In addition to this, since the free float status review by MSCI of Adani Group stocks is being taken very seriously, the finance company will reportedly also apply a special treatment for all Adani Group’s associated securities in MSCI Equity Indexes. This move too, will be implemented from February.
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The report also adds that the new index weightings for Adani Total Gas and Adani Transmission have now been delayed till May. Before the postponement, the prospective changes were due to come into effect on March 1.
For those not familiar with the issue, before this postponement announcement, MSCI reduced weightage of four Adani Group stocks including the torchbearer Adani Enterprises. This announcement was made after the finance company closely monitored the number of shares that were freely traded.
It must also be noted that while MSCI monitors the performance of several companies every now and then, a close review of the Gautam Adani-led Adani Group happened after Hindenburg Research alleged fraud. The scathing report that triggered a selling spree in Adani Group stocks, was actively refuted by the Adani Group.
