By Scott Murdoch and Rodrigo Campos

(Reuters) -Index supplier MSCI stated it should lower the weightings of 4 Adani Group corporations, together with flagship agency Adani Enterprises, in its indexes after reassessing the variety of shares which might be freely traded.

The transfer comes within the wake of a Jan. 24 report by U.S. brief vendor Hindenburg Analysis that has accused the Indian conglomerate of improper use of offshore tax havens and inventory manipulation. The group has denied any wrongdoing.

The Hindenburg report has plunged the group, led by billionaire Gautam Adani, into disaster, wiping some $110 billion off the worth of the group’s primary seven listed corporations.

Along with Adani Enterprises – the group’s coal-miner-cum-incubator for brand new initiatives, MSCI additionally plans to chop the weightings for Adani Whole Fuel – a enterprise with France’s TotalEnergies and Adani Transmission, an influence transmission firm.

It should additionally scale back the weighting of ACC, a serious Indian cement firm the Adani Group acquired from Holcim (SIX:) final 12 months and which isn’t one of many group’s primary seven listed corporations.

Adani Group didn’t instantly reply to a request for remark from Reuters on Friday.

The 4 corporations had a mixed 0.4% weighting within the MSCI rising markets index as of Jan. 30. The adjustments come into impact on March 1.

“The decrease free float would require passive traders to promote inventory to cut back their monitoring error with the index,” stated Brian Freitas, a Periscope Analytics analyst who publishes on Smartkarma.

“There might be promoting from lively traders earlier than that as they attempt to promote earlier than the passives.”