Morgan Stanley Capital International (MSCI) on Thursday said that it has started its review of the free float status of Adani Group securities. While a final decision is yet to be reached by MSCI, the index provider said that it received feedback from a range of market participants concerning the eligibility and free float determination of Adani Group stocks.
“MSCI has received feedback from a range of market participants concerning the eligibility and free float determination of specific securities associated with the Adani Group for the MSCI Global Investable Market Indexes (GIMI),” it said in an official statement.
With this announcement, MSCI has raised concerns about the eligibility of some companies in the billionaire Gautam Adani-led Empire, the Adani Group. For the unversed, as of last month, MSCI has been monitoring all information and movements related to Adani Group securities, especially after the Hindenburg Research report.
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Signalling the dismissal of free float status, MSCI, in a statement 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.”
Before the Adani Group stocks started recovering, several companies reportedly lost a combined $100 billion in value after the Hindenburg Research report triggered massive sell-off. While the Gautam Adani-led conglomerate has refuted all allegations of the Hindenburg report, the latter has asserted it all as ‘fraud is fraud.’
In addition this, even Nate Anderson, a part of the Hindenburg Research tweeted, “We view this as validation of our findings on offshore stock parking by Adani.”
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