Monthly Archives: February 2023

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Feb 26, 2023
Budget 2023: Googly on capital gains leaves experts stumped, HNIs sweat

By Siddhant Mishra

The markets cheered the Budget announcement of not to tinker with capital gains tax, but a proposal to tax income from market-linked debentures (MLDs) as short-term capital gains has come as a rude shock.

MLDs differ from regular non-convertible debentures or NCDs, which come with regular interest payouts, as investors get their returns only at maturity.

Also read: Railways Budget: More Vande Bharat Express productions, Hydrogen-Powered trains to roll out by December, says Ashwini Vaishnaw

“Given that MLDs mostly carry tenures of three years or less, and part of the returns are linked to market benchmark-related risks that are unlikely to play out, it effectively acts like a fixed-income instrument,” said Anuj Kapoor, MD and CEO (private wealth group and venture capital funds platform), JM Financial.

For instance, say a company issues MLDs at a certain coupon rate maturing in two years. Here, the coupon will be paid upon the condition that the benchmark to which it is linked does not fall beyond a level. If it does, only the principal would be returned with no interest.

Sebi regulations only allow principal-protected MLDs to be issued in India. A September 2011 notification by the regulator mandated issuers of such instruments to have a minimum net worth of Rs 100 crore.

Kapoor said MLDs are close to a Rs 15,000-crore market, and majority of the investments will unwind and shift to direct bonds, debt AIFs, and other tax-free bonds.

Agrees Shalibhadra Shah, CFO of Motilal Oswal Financial Services, saying since returns will now be treated as short-term capital gains, the tax would be levied at the maximum marginal rate of 30% (plus surcharge and cess as applicable) on transfer or redemption.

Also read: Budget 2023 – Revving up the engine: Manufacturing sector braces for growth

“Earlier, these debentures yielded higher post-tax returns than FDs or debt MFs owing to low tax incidence. However, with the incidence of full tax proposed, they may lose flavour as post-tax returns will fall drastically,” said Shah.

The FM, in the Budget, has proposed an amendment to the I-T Act, with the view that tax benefits from such instruments are being grossly abused. Experts feel that despite the objective to plug tax leakages, such stringent measures would lead to MLDs losing their competitive advantage.

“The proposed amendment has a dual effect on taxation of such gains. First, all such gains will be taxed at normal rates. Since most taxpayers investing in MLDs are HNIs, they will be taxed at as high as 39%, vis-à-vis 10.92% earlier. Second, indexation of the cost of acquisition will not be available. This would substantially increase the amount of capital gains and reduce overall returns on investment,” said Rahul Charkha, partner, Economic Laws Practice.

He pointed out that this was disadvantageous to investors who have already invested in such MLDs. “For the sake of clarity, it would be prudent if the proposed tax treatment is made applicable to investments made after April 1, 2023, as against gains arising after that date,” he said, adding that investors agitated by the amendment may seek early redemption and rush to withdraw their investments, creating havoc in the market.

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Feb 26, 2023
Drone maker ideaForge files for IPO: A side-by-side look vs DroneAcharya’s bumper IPO; issue size, more

Drone maker ideaForge Technology filed papers with capital markets regulator Sebi to raise capital via an initial public offering. The drone designer and manufacturer boasted of approximately 50% market share in Indian unmanned aircraft systems. The IPO comprises fresh issues of shares worth Rs 300 crore as well as an offer-for-sale (OFS), with the promoters and shareholders offloading 48.7 lakh shares with a face value of Rs 10 each. The proceeds from its fresh issuance to the tune of Rs 50 crore will be utilized for repayment / prepayment of certain debts, Rs 135 crore will be towards funding working capital requirements and Rs 40 crore for investment in product development and general corporate purposes.

ideaForge Technology’s products and services range from UAVs, batteries, communication systems to drone-related software and solutions, catering to customers applications for surveillance, mapping and surveying. The firm’s debut on the bourses would be the first-ever listing of a drone manufacturing company. JM Financial and IIFL Capital are the book running lead managers for the Infosys and Qualcomm-backed company.

Drone startup DroneAcharya Aerial Innovations listed on BSE SME platform in December 2022, listing at a bumper premium of 90%. DroneAcharya stock made its market debut at Rs 102 on the BSE, as compared to the public issue price of Rs 54. The scrip shortly thereafter rose to Rs 107 per share, up 98%. DroneAcharya’s issue size was approximately 12.5% of ideaForge’s issue size, clocking in at fresh issues of Rs 34 crore. The aerial innovations company provides a high-end ecosystem of drone solutions, such as training, surveys, data processing and surveillance.

FY22 Revenue

DroneAcharya: Rs 3.59 croreideaForge Technologies: Rs 1,59.43 crore

FY22 Profit

DroneAcharya: Rs 40.65 lakhsideaForge Technologies: Rs 44 crore

Fresh Issue

DroneAcharya: Rs 34 croreideaForge Technologies: Rs 300 crore

OFS

DroneAcharya: NillideaForge Technologies: 4,869,712 shares

Board

DroneAcharya: SME BoardideaForge Technologies: Main Board

However, in its DRHP, ideaForge did not mention DroneAcharya among its listed peers. “There are no listed companies that exclusively undertake the manufacturing of drones. Hence, basis factors such as the scale of the business, exposure to the defence sector, manufacturing of electronics products, a proxy set of listed peers of MTAR Technologies Limited, Data Patterns (India) Limited and Astra Microwave Products Limited have been identified for our Company,” stated the Mumbai-based drone manufacturer.

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Feb 25, 2023
Tax uncertainty makes REIT, InvIT investors wary

The uncertainty over the taxability of capital returned to unitholders of real estate investment trust (REITs) and infrastructure investment trusts (InvITs) has spooked investors in these vehicles.

The proposed amendment in the Finance Bill 2023 seeks to tax repayment of debt to such unitholders as ‘income from other sources’ under Section 56(2)(xii) of the IT Act, which may not be appropriate under law, said experts.

Income from other sources is a residual head and deals with incomes otherwise not covered under any other provisions of law.

The Finance Act 2021 amended the definition of securities to include units issued by business trusts. All securities whether listed or not are capital assets u/s 2(14) of IT Act.

Accordingly, investments by unitholders in REITs/InvITs are ‘securities’ and ‘capital assets’. Any return of capital by the business trust to the unit holder should be first allowed to be set off against the cost of capital assets in the hands of the unitholder and the excess offered to tax.

Whats is more, extension of debt by REITs or InvITs to their SPVs is a transaction on capital account, and the refund, repayment or redemption of the principal amount does not constitute income under the IT Act.

Also read: Manufacturing trends and challenges in 2023: Co-innovation is the key to success

“The return of capital to the unitholders by REITs/InvITs, which arises out of the repayment of debt by the underlying SPVs, is essentially in the nature of capital receipt. At best, it can be taxed as capital gains and not income from other sources, and that also only when the payment exceeds the cost of unit capital put in by the investors,” said Punit Shah, partner, Dhruva Advisors.

Shah added that appropriate amendments would need to be made in the capital gains provisions of the IT Act to avoid any ambiguity in future.

“When you invest under a security for a long time, it is treated as capital asset. Post the amendment in the Budget, even the return of investment in a capital asset will be charged to tax as other income. Secondly, if you are earning more than what you invested in a listed product, it is always treated under capital gains regime, not under income from other sources,” said Nitan Chhatwal, managing director-investment manager, Shrem InvIT.

InvITs as an asset class has started taking off in the last two years and domestic investors would be wary of putting money in such assets because of the arbitrary taxation, added Chhatwal.

Investments under InvITs amount to less than Rs 1 trillion at present and is projected to grow to Rs 10 trillion by 2030.

“Taxing of repayment of loans in the hands of unitholders of business trusts as income from other sources puts unitholders at a greater disadvantage and will impact yields,” said Anish Sanghvi, partner, Pricewaterhouse & Co.

Also read: Ola S1, S1 Air e-scooters get new variants: Priced from Rs 84,999

Also, there are a lot of practical difficulties that need to be ironed out. For instance, how does the business trust deal with buying units when a distribution entails redemption of partial units (in the absence of face value concept), Sanghvi said.

Sebi laws do not have the concept of face or par value of units as in the case of shares. The laws may have to be amended to allow for partial redemption of REIT/InvIT units so that there’s no tax liability until cost of capital gets exhausted, said experts.

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Feb 24, 2023
Sebi steps up vigil on MF industry

The Securities and Exchange Board of India (Sebi) on Monday put out a tender, inviting expressions of interest (EOIs) from eligible companies for empanelment to take up forensic audit of fund houses, their asset management companies and trustee entities/board of trustees.

The auditors empanelled will be required to undertake forensic acquisition and extraction, including imaging of different devices, following which they shall submit a report with their findings and conclusions to the markets regulator.

In the past one decade, the MF industry has grown close to 5x with assets under management touching Rs 40 trillion as of December, from Rs 8 trillion in November 2012.

Also read: Adani Transmission, Adani Green Energy among 120 BSE stocks to touch 52-week lows, 112 stocks hit 52-week highs

In its earlier paper, the regulator had proposed MF trustees should monitor instances of market abuse by AMCs and its employees, as well as mis-selling to increase the asset base.

The markets regulator has, of late, stepped up vigil with respect to front-running in fund houses and broking firms. Front-running is the practice of purchasing shares and securities based on advance information regarding large transactions, which has otherwise not been made public, and could have a material impact on the price of a security.

It comes under the category of market manipulation and insider trading. It constitutes is a serious violation and comes under the Sebi (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.

Auditors appointed by the regulator are also said to have visited fund houses, seeking call record data of senior officials. In addition, the regulator is also said to be asking for backup data of transactions by such fund houses for audit.

The mutual fund industry has faced several front-running cases in the past decade. While fund houses say that they are putting in place more controls, such as keeping track of relatives, friends, etc, of key employees to make sure that any front-running could be clamped down early on, it is actually a very difficult job to do so. Some fund houses have also resorted to external reviews done on a quarterly basis.

Recent instances of front-running and market manipulation are likely to have pushed the regulator to step up guard. Axis Mutual Fund had come under scanner last year owing to certain breaches of securities laws. The allegations led to two fund managers Viresh Joshi and Deepak Agrawal being terminated.

Also read: Drone maker ideaForge files for IPO: A side-by-side look vs DroneAcharya’s bumper IPO; issue size, more

According to the tender, applicants must have reported total revenue from forensic audit assignments of at least Rs 1 crore in the last three financial years, in addition to experience of assignments in the field of mutual funds.

Sebi has granted time till March 6 for applicants to send their EoIs.

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Feb 23, 2023
Examining volatility in Adani shares: Sebi

The Securities and Exchange Board of India (Sebi) issued a statement on Saturday to ease concerns about the ongoing volatility in the market, specifically the turbulence linked to Adani Group shares.“During the past week, unusual price movement in the stocks of a business conglomerate has been observed.

As part of its mandate, Sebi seeks to maintain orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks. This mechanism gets automatically triggered under certain conditions of price volatility in any stock,” the regulator said in a statement, without naming the conglomerate. Shares of Adani Group companies slid for the seventh straight session on Friday with the group’s combined market capitalisation seeing a drop of over $110 billion since January 24.

The regulator also reiterated its commitment to ensuring market integrity and to ensuring that markets continue to have the appropriate structural strength to function in an uninterrupted, transparent and efficient manner, as has been the case so far.”Sebi has consistently followed this approach on entity level issues and would continue to do so in future as well,” it said.

The Indian financial market, as represented by benchmark indices Sensex and Nifty, have demonstrated ongoing stability and continue to function in a transparent, fair and efficient manner, the regulator said.”On a longer term basis, Indian markets have been viewed positively by investors. A cross-country comparison of dollar-adjusted market returns with both peer and developed countries, during the past three years till date, places the Indian market as a positive outlier,” Sebi said.

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Feb 21, 2023
Nifty to climb above 18000 or bears to grip Dalal Street again? 7 things to know before share market opening bell

Indian benchmark indices are likely to open on a negative note, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were in the red at 17,963 level. In the previous session, Sensex closed marginally above 61,000, down 0.52% and the Nifty gave up 17,950. “Lack of major triggers in the domestic market is attracting global cues to dictate the market trend. The US market is facing an unfavorable combination of higher-than-expected inflation and a stronger job market. This suggests that interest rates have not yet peaked and will remain elevated for a long period,” said Vinod Nair, Head of Research, Geojit Financial Services.

Key things to know before share market opens

Wall Street Overnight

On Friday, Wall Street closed mixed as investor sentiments were weighed by sticky inflation and fears of continued rate hikes. The Dow Jones Industrial Average gained 129 points or 0.4%. However, the Nasdaq composite fell 0.6% and the S&P dropped 0.3% after paring a bigger loss from the morning.

Crude Oil

Oil prices were little changed in early Asian trade on Monday, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery. Brent crude slid 9 cents, or 0.1%, to $82.91 a barrel. U.S. West Texas Intermediate crude for March, which expires on Tuesday, was at $76.40 a barrel, up 6 cents. The more active April contract fell 9 cents to $76.46.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth Rs 624.61 crore, while domestic institutional investors (DII) sold equities worth Rs 85.29 crore on 17 February, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Ambuja Cements and Indiabulls Housing Finance stocks on its F&O ban list for 20 February. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Technical View

“A small negative candle was formed on the daily chart with long upper and lower shadow. Technically, this pattern indicates minor reversal in the market from the highs. The minor degree positive chart pattern like higher tops and bottoms continued on the daily chart and present weakness could be in line with a new higher bottom formation. but, there is no confirmation of any higher bottom reversal yet at the lows.

“The short term trend of Nifty is choppy with weak bias. The present weakness has not damaged the near term uptrend status of the market so far and we expect chances of buying emerging from near the lower support of around 17,800 levels in the coming week. On the higher side, the area of 18,150 could act as a resistance,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to Watch

“According to the volume profile, the index may find support around 17,750-17,800. In terms of OI data, the call side had the highest OI at 18,000, followed by 18,100 strike prices, and the put side had the highest OI at 17,800 strike price. Bank Nifty, on the other hand, has resistance at 41,700-41,800 and support at 40,700-40,900,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst, Choice Broking.

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Feb 20, 2023
Crude oil prices slide; Go long around Rs 6000/bbl with upside target of Rs 6500/bbl

By Bhavik Patel

In a surprising move, crude oil which started its rally from WTI $75 to $82 has once again returned back. The reopening of the Chinese economy was the main catalyst for the rally, however that fad seems to be fading away. The reversal of the zero-Covid policy of the authorities in Beijing was like a starting pistol for oil traders after a year of lockdowns and uncertainty. Now, there are also hopes that the United States could avoid a recession, even though the latest manufacturing data suggests otherwise.

One of the reasons for the recent correction would be recession fears. In fact after six months of 2022, crude oil started sliding on recession fears as central banks started aggressively hiking rates to combat inflation. We don’t believe prices will remain low for long as Chinese authorities have issued a massive batch of allowances for independent refiners to import crude oil. China’s reopening is expected to drive fuel demand growth after the initial exit Covid wave wanes at some point later this quarter. Crude oil imports into Asia hit an all-time high in January, rising by 11% from December, despite lower arrivals into China according to data from Refinitiv Oil Research.

Global oil demand is set to rise by 1.9 million bpd in 2023, to a record 101.7 million bpd, with nearly half the gain coming from China following the lifting of its Covid restrictions, the International Energy Agency (IEA) said in its Oil Market Report for January. OPEC+ is also dragging its feet as the entire OPEC-13 organization saw crude oil production in January drop to 29.12 million bpd due to lower output from Saudi Arabia and Libya, partly offset by slight gains among some other members.

Crude oil in MCX is in bearish trend as momentum oscillator RSI_14 is trading at 40. 6750 seems to be strong resistance as crude has reversed from that zone. The downside momentum is expected to continue till 6075-6000 where support is expected to emerge. 6000 is also the previous swing low. We would recommend to go long around that zone with expected price till 6500 and stoploss of 5900.

(Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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Feb 19, 2023
Nifty may remain volatile, use Call Ladder strategy for profits on F&O expiry; Bank Nifty support at 36000

By Rajesh Palviya

In Nifty current series a Long Unwinding has been witnessed with decrease in price of (-)2.18% and decrease in OI by (-)31% as of Wednesday, wherein there was unwinding of 37.79.06 lakh shares in OI, decreasing from 122.67 lakh to 84.88 lakh shares. NSE Nifty 50 current month rollover stands at 23% as of Wednesday, while Nifty Put Call Ratio, a sentiment indicator used by Traders to gauge the market sentiment and mood, is currently at 0.83 compared to 0.97 of last week, indicating flat-to-positive movement.

In weekly options there was Call writing seen at 17,200 strike followed by 17,300 & 17,500 while on the Put side noticeable activity of writing was witnessed in 17,000 ,16,800 & 16,700 strike prices. Options data suggest an immediate trading range between 17,000 and 17,300 levels.

Nifty Open Interest Concentration 

Nifty Option OI Change 

Bank Nifty Outlook

In current series there has been a Long Unwinding witnessed in Bank Nifty Fut with an decrease in price of (-)0.36% and decrease in OI by (-)42% as of Wednesday, wherein there was unwinding of 15.53 lakh shares in OI, decreasing from 37.06 lakh to 21.53 lakh shares. Bank Nifty Current series rollover stands at 20% as of Wednesday, while Bank Nifty Put Call Ratio, a sentiment indicator used by traders to gauge the market sentiment and mood, is currently at 0.63 compared to 0.80 of last week indicating flat-to-positive movement.

Bank Nifty Put options OI distribution shows that 36,000 has highest OI concentration followed by 35,500 & 35,800 which may act as support for current expiry and on the Call front 37,000 followed by 36,500 & 36,800 witnessed significant OI concentration and may act as resistance.

In weekly options Call writing seen at 36,500, 36,800 & 37,000 strike while on the put side it was seen at 36,000, 35,500 & 35,800 Options data indicated an immediate trading range between 37,000 and 36,000 levels.

Bank Nifty Open Interest Concentration

Bank Nifty Option OI Change

NSE Nifty 50 trading strategy for F&O expiry day

The strategy which we are suggesting for this monthly expiry dated 28th April is a Moderately Bullish strategy called as CALL LADDER, which involves buying of one lot of Nifty 17,150 Call @ 180 & selling of one lot each of 17,300 Call @ 106 & one lot of 17,450 Call @ 57. The cost of the strategy involves outflow of Rs 850 which is the maximum loss if Nifty trades and remains below 17,160 levels on expiry day.The maximum profit of Rs 6,650 will be attained at 17,300 levels, while strategy will start making loss above 17,580, hence it’s advisable to exit the strategy in total to avoid unlimited losses above 17,580. Break Even points of the strategy are 17,583 on upside and 17,167 on the lower side.

(Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities. Views expressed are the author’s own.)

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Feb 17, 2023
Buy these two stocks for gains while Nifty, Bank Nifty structures remain bearish

By Rohan Patil

Last week was a very volatile week for the Indian bourses as well as for the entire global market. Every alternate day Nifty changes its candle colour and the major gap up and gap down was the main pain for the benchmark index. Till the last day of the trading week, the index was showing a negative return for the week but a surprising gap-up opening on Friday’s session led to a strong buying and the Nifty closed the week with a three per cent gain.

The immediate support for the Nifty is placed near 16000 and below that 15800 will act as major support for the Nifty. The immediate resistance for the Nifty is placed at 16450 levels where 21-day exponential moving average is settled.

Bank Nifty structure still bearish

From the last couple of weeks, prices are finding support near their 100-week exponential moving average which is placed at 33618 levels. The Momentum oscillator RSI (14) has shown a positive divergence at oversold levels on the weekly scale. In this case, indicator made a new low but prices have defended their previous low.

The Bank Nifty on the daily chart has made a flag like formation whose upper band is formed at 34800 levels and the lower band of the pattern is from 33400 levels. The overall structure for the Bank Nifty still remains bearish as prices are well sustained below its (21, 50, &100) – day exponential moving averages.

We feel that the Currently Banking index has just shown a positive divergence and prices have just shown some recovery so an oversold rally at this point cannot be ruled out.

The immediate support for the Bank Nifty is placed near 33300 and below that 32500 will act as major support for the Bank Nifty. The immediate resistance for the Bank Nifty is placed at 34800 levels where 21-day exponential moving average is settled.

Tata Elxsi: BUYTarget: Rs 9000 | Stop Loss: Rs 8000Return 07%

TATA ELXSI on the daily chart has given a sharp V shape reversal rally and has formed an intermediate bottom at around 6800 levels. The prices have also given a downward sloping trend line breakout on 18th May above 8200 levels.

On the weekly chart prices have formed a bullish engulfing candle stick pattern and prices are trading above the high of the pattern which is positive for the prices. Prices are trading well above its important averages and Momentum oscillator RSI has also witnessed a trend line breakout above 55 levels on the daily interval.

ITC: BUYTarget: Rs 300 | Stop Loss: Rs 266Return 07.20%

ITC is giving a consolidation breakout which has been making since last six weeks and sustaining at multi – -year high indicating positive undertone of the market. On the daily charts, the stock is forming big bullish candle with huge volumes of confirmations.

On the indicator front, the RSI plotted on all the time frame is sustaining above 60 levels which shows strong positive momentum. The earlier stock has given breakout 6 weeks prior and prices consolidated above its trend line support without disturbing its bullish technical factor.

(Rohan Patil is a Technical Analyst at Bonanza Portfolio. The views expressed are the author’s own. Please consult your financial advisor before investing)

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Feb 15, 2023
Brokers stare at losses as Adani stocks remain shaky

Brokers who have provided funding to clients against shares of Adani group stocks are staring at losses worth hundreds of crores.

This is because a number of the group’s shares — Adani Green Energy, Adani Transmission, Adani Wilmar, Adani Power and Adani Total Gas — have been hitting the lower circuit almost every day since January 25. This means trading has stopped in these shares for the most part and brokers are unable to offload shares in the market as there are no buyers.

Flagship Adani Enterprises recovered to end 1.25% higher to close at Rs 1,584 after slipping over 25% intraday. The shares had tanked 26.5% on Thursday and 27% on February 1. ACC, Ambuja Cements and Adani Ports & SEZ also ended in the green.

Also read: Gautam Adani no longer among world’s top 20 richest people as Adani Group sheds $108 billion in market value

Other stocks, however, continued to hit their lower limits. Adani Transmission and Adani Green Energy tanked by 10%, while Adani Total Gas, Adani Power and Adani Wilmar were down 5% each. Experts suggest that if the stocks continue to hit lower circuits, brokers will be staring at naked positions, with prices falling below the amount lent to clients, resulting in losses for brokers.

Margin against shares is offered by brokers to traders wanting to take leveraged bets.The broker takes the stocks as collateral and lends funds to trade on a short-term basis.

“Some of the Adani Group stocks are hitting the lower circuit every day. Suppose if someone was holding Adani Green shares and there’s a margin call. In normal circumstances, the broker can sell the shares if the client is unable to bring additional funds. But in this case, the broker won’t be in a position to liquidate the shares because there are no buyers,” said a senior industry official.

Let’s say the broker had set a 50% funding limit on a share collateral of Rs 10 crore of Adani shares. Once the share value of these falls below Rs 5 crore, it will trigger margin calls. The broker will call for additional funds or will resort to selling the shares available with it to meet the shortfall. If the broker is unable to sell, it will have to meet the shortfall on its own.

Brokers could also face issues in their margin trading facility (MTF) books. Those offering MTF have already increased the margin requirements on Adani Group stocks in the past few days to as high as 70-80%, said people in the know. One leading broker has put Adani Enterprises in its no funding list.

Also read: Scaling up our ethanol blending programme

“We were not providing MTF facility against most of the Adani Group stocks, except Adani Ports and Adani Enterprises, and that too with a very high margin. That may not be the case with the rest of the industry,” said Ashish Rathi, whole time director, HDFC Securities.

“If you look at Adani Total Gas, the stock has been falling without volume. It’s difficult to exit. Even if you have a margin with a 20-25% haircut you can’t liquidate that stock,” he said.

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