New Delhi : Adani Group has faced consequences from MSCI for its recent controversies. Following feedback from market participants, MSCI announced that it will revoke the free float status of certain Adani Group companies and reduce the weighting of four companies in the group: Adani Enterprises, Adani Total Gas, Adani Transmission, and ACC. MSCI defines the free float of a security as the proportion of shares available for purchase by international investors in the public equity markets.

The Adani Group has faced significant losses since the publication of a report by Hindenburg Research on January 24, 2023, alleging the Indian conglomerate of stock manipulation and improper use of offshore tax havens. Despite a detailed response from the Adani Group denying any wrongdoing, it has had little effect in restoring investor confidence. As a result, the port-to-coal-to-energy conglomerate has lost approximately $110 billion from its listed firms.

Nate Anderson, the founder of Hindenburg Research, expressed his support for MSCI’s decision, viewing it as validation of the company’s findings on Adani’s offshore stock parking practices. The four companies had a combined weight of 0.4% in the MSCI Emerging Markets Index as of January 30, 2023. The changes will take effect on March 1, 2023.