Dow Cuts Adani Enterprises Off its ESG Indices
Adani Enterprises Limited
As a result of claims of fraud by the Adani Group in the Hindenburg investigation, Nifty50 stock Adani Enterprises has been removed from Dow Jones Sustainability Indices (DJSI).
"Adani Enterprises will be taken off the Dow Jones Sustainability Indices after a media and stakeholder review," Dow Jones said in a statement.
The Dow Jones Sustainability Indices are market-capitalisation-weighted indices that measure the performance of companies based on their environmental, social, governance, and economic (ESG) practices. The DJSI comprises the top 10% of the largest 2,500 companies in the S&P Global BMI, as selected through the Corporate Sustainability Assessment (CSA) by S&P Global.
Adani stocks have experienced a significant decline, leading to a loss of over 40% of investor wealth, following allegations made by an American short-seller in a report last week.
The Securities and Exchange Board of India (SEBI), the Indian stock market regulator, is reportedly examining the recent drop in Adani Group company stocks to investigate any possible irregularities in their follow-on public offering (FPO). The Reserve Bank of India (RBI) is also said to have asked banks for information about how much risk they have with highly leveraged Adani Group companies.
Source: The Economic Times
