KONTAN.CO.ID - NEW YORK. Index provider MSCI said on Wednesday it will postpone implementation of updates to weightings for two of India's Adani Group companies, Adani Total Gas and Adani Transmission, to the May benchmark review. The reversal of the updates to Adani Total Gas and Adani Transmission in the February index review will be reflected in the MSCI Index Product files starting from Feb. 16, MSCI said. MSCI will also apply a special treatment for all Adani Group's associated securities in the MSCI Equity Indexes starting from February.
Adani did not immediately respond to a request for comment sent outside of normal Indian business hours. MSCI said last week it would cut the weightings of four Adani Group companies, including flagship firm Adani Enterprises, in its indexes after reassessing the number of shares that are freely traded. Baca Juga: Adani Group Hires Banks to Hold Bond Investor Calls After Market Rout The new index weightings were due to come into effect on March 1 but the proposed changes to Adani Total Gas and Adani Transmission will be delayed until May. MSCI said "potential replicability issues" are behind the decision. Its methodology calls for indexes to be replicated "in an actual portfolio in a cost efficient matter." MSCI did not immediately respond to a Reuters request for comment on why the changes were reversed shortly after being announced last week. The changes to the weightings of Adani Enterprises and ACC, a major Indian cement company the Adani Group acquired from Holcim last year, are still due to go ahead.
