Announcement for May 11, 2023 at 09:37 PM GMT
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
IMPLEMENTATION TREATMENT OF ADANI GROUP AND ASSOCIATED SECURITIES DURING MAY 2023 INDEX REVIEW
MSCI announces today the following implementation treatment approach it will apply as part of the May 2023 Index Review were further replicability issues to arise from any of the price limit mechanisms potentially affecting Adani securities.
On May 05, 2023, MSCI announced that the following Foreign Inclusion Factor (FIF) changes for Adani Total Gas and Adani Transmission will be implemented in the May 2023 Index Review:
Security Name - (MSCI Security Code/RIC Code)
* Adani Total Gas (98114.01/ADAG.NS) FIF/DIF: from 0.25 to 0.14.
* Adani Transmission (79334.01/ADAI.NS) FIF/DIF: from 0.25 to 0.10.
As a result of these changes, these two securities will no longer be eligible for inclusion in the MSCI Global Investable Market Indexes (GIMI) as the companies will not meet the relevant free float-adjusted market capitalization requirements. Consequently, Adani Total Gas and Adani Transmission will be deleted from the MSCI GIMI, as well as the related MSCI Factor, MSCI ESG, MSCI Thematic and MSCI Capped Indexes as of the close of May 31, 2023 (effective June 01, 2023).
Based on the currently available information, Adani Total Gas and Adani Transmission are subject to 5% up and down price limit. The official price band is made available by the National Stock Exchange on a daily basis.
Subsequent to our announcement of the FIF calculation treatment of Adani Group securities for the February 2023 Index Review, MSCI received feedback from market participants on significant potential replicability issues arising from the price limit mechanism being triggered for the affected securities. If the lower price limit were reached for Adani Total Gas and/or Adani Transmission on May 31, 2023, the reduced trading liquidity and volumes would likely result in significant difficulty in implementing the announced index changes at the official index security closing prices.
Therefore, pursuant to MSCI's Index Policies (June 2022), MSCI exceptionally will analyze the price evolution for these two securities after the close of May 31, 2023. If Adani Total Gas or Adani Transmission trade at the lower price limit for at least 5 minutes cumulatively during this day, MSCI will delete these securities at the lowest system price as of the close of May 31, 2023 (effective June 01, 2023). Otherwise, MSCI will use the official closing prices, as per the MSCI Index Calculation methodology. MSCI will make an announcement confirming the price used for deleting Adani Total Gas and Adani Transmission after the close of May 31, 2023.
As a reminder, and as announced on May 05, 2023, for the remaining relevant Adani securities, MSCI will continue to apply the FIF announced as part of the February 2023 Index Review. Therefore, there will be no change in the FIF as part of the May 2023 Index Review for the following securities:
Security Name - (MSCI Security Code/RIC Code)
* ACC (16086.01/ACC.NS).
* Adani Enterprises (33358.01/ADEL.NS).
* Adani Green Energy (96268.01/ADNA.NS).
* Adani Ports and Sez (38344.01/APSE.NS).
* Adani Power (62805.01/ADAN.NS).
* Ambuja Cements (16110.01/ABUJ.NS)
These six securities will have no changes in their inclusion status in the MSCI GIMI as a result of the May 2023 Index Review. The results of the May 2023 Index Review for the MSCI Factor, MSCI ESG, MSCI Thematic and MSCI Capped Indexes will be announced as of the close of May 19, 2023. MSCI will not apply any special implementation treatment for any potential changes for these six securities resulting from the May 2023 Index Review.
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
End of announcement.
Further announcements may occur as needed.
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