Jio Financial Services removed from BSE indices from September 1

1 Sep 2023 , 12:54 PM

The Bombay Stock Exchange said on August 31 that Jio Financial Services (JFS), Reliance Industries’ demerged financial arm, will be withdrawn from the BSE Indices, including the benchmark 30-pack Sensex, on September 1.

The stock’s exclusion plan was initially slated for August 23, but exchanges delayed it because it remained stuck in the lower circuit. However, the stock will not be removed from NSE.

On August 31, the stock closed at a 5% rise for the third consecutive session, reaching Rs 242.50 per share on the BSE.

JFS accounts for 1.1% of the Sensex’s weight, which might result in the passive sale of around 60 million shares (worth approximately $180 million).

Jio Financial will not be removed from the Nifty index, according to Nuvama, unless the newly constituted firm avoids price limitations (upward or downward) for two consecutive days.

For example, if no price restriction is breached on August 31 and September 1, the exclusion will occur on September 4. This would cause the stock to exit the Trade to Trade (T to T) section on September 4, potentially allowing for a smoother exclusion the following week.

The inclusion of Jio Financial in the MSCI and FTSE indices will have no effect on inflows or outflows; as long as they hold the fort, the exclusion from the Sensex will not harm the company.

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