In another blow to the Adani Group after the Hindenburg Research report rout, now global lending giant Standard Chartered has reportedly stopped accepting Adani bonds as collateral. The update comes just a few days after Credit Suisse and Citigroup’s wealth division did the same.
As per a report by ETNow television channel, Standard Chartered Plc. has stopped accepting bonds of Adani Group firms as collateral on margin loans. It adds that the lender has also asked its private clients to top up their collateral for any shortfall.
While Standard Chartered is yet to officially comment on the same, the reported move by the lending giant comes a time when Adani Enterprises and other firms of the Adani Group are navigating tricky waters on many fronts. Even though the group has denied all allegations of fraud raised by the US-based research firm, Hindenburg Research has affirmed of the same.
At this point, after Adani Group stocks too, faced a massive spelling spree and crashed more than anticipated, all eyes are also on how the group tackles this mess. While in the 413-pages long response, the Adani Group mentioned of looking at remedial actions, till now, nothing official has come to light.
Recently, in order to curb the volatility in Adani Group stocks, the National Stock Exchange (NSE) put Adani Enterprises, Adani Ports and Ambuja Cements under the ASM framework as an additional surveillance initiative in order to enhance ‘market integrity and safeguard the interest of investors.’