FTSE Proceeds with Scheduled Index Review Changes for Adani Group

The Financial Times Stock Exchange (FTSE) has hinted at its plan to proceed with the scheduled index review changes for Adani Group (India) and its associated securities, despite trading in Adani stocks being restricted due to its daily price limits. On Friday, FTSE said that it “would like to confirm that it intends to proceed with the scheduled index review changes for the Adani Group (India) and its associated securities in line with index methodologies and policy guides, effective Monday 20 March 2023.” Earlier this week, FTSE Russel added 10 Indian stocks to its Global Large-cap index as part of its semi-annual index review. Under the 10 Indian stocks list, Adani’s cement company ACC which it owns majorly through Ambuja Cement is included. Other Indian stocks that are included in the large-cap index list by FTSE are — Kotak Mahindra Bank, Canara Bank, IDBI Bank, YES Bank, Union Bank of India, Indian Hotels, Jindal Steel & Power, Shriram Finance, Trent, and Tube Investments. Following the Adani – Hindenburg row, the London-based exchange advised that the Adani index constituents within the FTSE Russell indices will continue to remain eligible following the underlying index methodologies (subject to satisfying all index inclusion criteria). FTSE also said it will continue to monitor publicly available information on the company, in particular by the Indian regulatory authorities, for any developments. Currently, the apex court is looking to form a committee that could assess the market regulatory framework and recommends measures that could be adopted to protect investors in the wake of the Adani-Hindenburg matter.