JP Morgan has announced that Adani Group remains eligible for inclusion in the Corporate Emerging Market Bond Index (CEMBI), JPMorgan Asia Credit Index (JACI), and JPMorgan ESG Global Corporate Index (JESG) despite the recent selloff of its shares. In a note, JP Morgan stated that it continues to monitor the publicly available information and liquidity of the securities, and will take action in case of a market disruption or confirmed default event.
Adani Group is a conglomerate with businesses in ports, power generation, transmission, and renewable energy, among others, with a total notional of $7.7 billion in the CEMBI and JACI indexes. The CEMBI tracks US dollar-denominated debt issued by emerging market corporations, while JESG is an integrated environmental, social, and governance benchmark covering investment grade and high-yield markets.
The selloff of Adani Group shares has continued into its third week, causing a flurry of option market bets on how long the declines will last. Despite allegations made by Hindenburg Research of stock manipulation, tax haven use, and unsustainable debt, Adani has denied these claims in detailed rebuttals.
Six of Adani Group’s ten stocks saw a decrease on Monday, bringing the total losses since the fraud allegations were made by Hindenburg Research to approximately $117 billion. To ease investor concerns, billionaire Gautam Adani and his family prepaid $1.11 billion of borrowings backed by shares.
In an effort to prevent large movements in stock prices, the National Stock Exchange of India (NSE) has revised the circuit limits of Adani Green Energy Ltd and Adani Transmission Ltd to 5%. Last week, NSE had revised the price bands of both companies to 10% from 20%.
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