India’s Adani shares fall after MSCI review

Al Jazeera :
Global stock index compiler MSCI says it is reviewing the status of equities in India’s Adani Group, ending a brief rally for the troubled conglomerate, as it fends off allegations of market manipulation.
In a statement published early on Thursday India time, the United States-based MSCI said the review was triggered by investor concerns about the “eligibility and free float determination of specific securities” associated with the Adani Group.
 “MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology,” the firm added.
“This determination has triggered a free float review of the Adani Group securities.”
MSCI – an acronym for Morgan Stanley Capital International – defines a free float as the proportion of shares that can be bought publicly in share markets by international investors.
The business empire of Indian billionaire Gautam Adani lost about $120bn in value after US short-selling investment group Hindenburg Research in a report on January 24 accused it of artificially inflating share prices. The report and its aftermath also forced Adani Enterprises to abandon a $2.5bn stock offering.