Adani Enterprises to be dropped from Dow Jones sustainability indices

The move comes amid leading stock exchanges BSE and NSE putting three Adani Group companies under their short-term ASM framework

S&P Dow Jones has said it will remove Adani Group's flagship firm Adani Enterprises from sustainability indices with effect from February 7 following a media and stakeholder analysis triggered by allegations of accounting fraud.

The move comes amid leading stock exchanges BSE and NSE putting three Adani Group companies -- Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements -- under their short-term additional surveillance measure (ASM) framework.

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"Adani Enterprises will be removed from the Dow Jones sustainability indices following a media and stakeholder analysis triggered by allegations of accounting fraud," S&P Dow Jones Indices said in a statement.

It will make the changes to the Dow Jones sustainability indices, effective prior to the opening on February 7.

Shares of Adani Enterprises were trading 15 per cent lower on the BSE in the morning trade on Friday. The counter had plunged over 26 per cent on Thursday and more than 28 per cent on Wednesday.

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The 10 listed Adani Group firms have faced a combined erosion of over Rs 8.76 lakh crore in past six trading sessions.

On Wednesday, Adani Enterprises said it will not go ahead with its Rs 20,000-crore Follow-on Public Offer (FPO) and will return the proceeds to investors.

Adani Group stocks have taken a beating on the bourses after US-based Hindenburg Research made a litany of allegations in a report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.

Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.