MSCI Lifts Freeze on Adani Stocks Amid Heightened Scrutiny

Global index provider MSCI will lift the freeze on Adani Group stocks starting August 2024, amid ongoing scrutiny. Adjustments include updates to the number of shares and inclusion factors. MSCI will also include eight new securities in its India Index, effective late August.

Global index provider Morgan Stanley Capital International (MSCI) has announced the end of the freeze on Adani Group stocks. This move follows the persistent scrutiny triggered by allegations from Hindenburg Research. The changes will start with the August 2024 Index Review and will include updates to the Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF) for Adani Group and associated securities.

MSCI's announcement detailed that these changes will be effective at the close of August 30, 2024, and fully implemented by September 2, 2024. Furthermore, MSCI will resume the regular implementation of corporate events for these securities from September 2 onwards. "Starting from the August 2024 Index Review, MSCI will update the index review changes, including NOS, FIF, and DIF adjustments for Adani Group and associated securities previously postponed. Regular corporate event implementation for these securities will also resume effective September 2, 2024," clarified MSCI.

Despite lifting the freeze, MSCI emphasized ongoing monitoring of the Adani Group's free float status. Any necessary further communication will be issued as needed. Additionally, MSCI has added eight new securities, including Bosch and Vodafone Idea, to its MSCI India Index in this review, with no deletions noted.

(With inputs from agencies.)