Morgan Stanley Capital International (MSCI) is said to have delayed the adoption of index weighting modifications for two Adani Group equities. According to the latest developments, MSCI has postponed the evaluations of Adani Total Gas and Adani Transmission in reaction to the Hindenburg Research study route.
According to Reuters, MSCI stated in a statement that the reversal of the modifications to two Adani Group firms (Adani Gas and Adani Transmission) in the February index review would now be reflected in the MSCI Index Product files beginning February 16, 2023.
Furthermore, because MSCI takes the free float status evaluation of Adani Group equities extremely seriously, the finance firm will allegedly apply a unique treatment to all of Adani Group’s linked securities in MSCI Equity Indexes. This change will also take effect in February.
According to the article, the revised index weightings for Adani Total Gas and Adani Transmission have also been deferred until May. Prior to the deferral, the projected modifications were scheduled to take effect on March 1.
For those unfamiliar with the situation, prior to the announcement of the delay, MSCI decreased the weightage of four Adani Group companies, including the torchbearer Adani Enterprises. This statement came after the finance firm constantly tracked the quantity of freely traded shares.
It should also be highlighted that, while MSCI analyses the performance of various firms on a regular basis, a detailed examination of the Gautam Adani-led Adani Group occurred following Hindenburg Research’s allegations of fraud. The Adani Group vigorously rejected the scathing report that prompted a sell-off in Adani Group equities.
