Jio Financial's removal from indices is postponed by BSE and NSE for three more days after shares hit a lower circuit

23 Aug 2023 , 09:12 AM

The removal of Jio Financial Services Limited (JFSL) from its important indexes was postponed by three further days by stock exchanges on Tuesday after the stock experienced two consecutive days of trading below its lower circuit limit following its listing.

For the second session in a row, Jio Financial Services Limited (JFSL) stock continued to decline. On the BSE and NSE, respectively, the shares of JFSL finished at Rs 239.20 and Rs 236.45, respectively.

In a notice, BSE stated: ‘Asia Index Private Limited (AIPL) recently announced that Jio Financial Services Ltd will be removed from all the S&P BSE Indices effective prior to the open of trading on Thursday, August 24, 2023, following its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries.’

‘The Index Committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another 3 days,’ the stock exchange noted. ‘Since the stock has hit a lower circuit limit for 2 consecutive days, i.e., Monday, August 21, 2023, and Tuesday, August 22, 2023.’

JFSL will no longer be included in any S&P BSE indices as of the start of trade on Tuesday, August 29, 2023.

The stock market further stated that the removal date will be postponed by an additional three days if JFSL continued to hit the lower circuit over the following two days.

On July 20, during a special pre-open session, Jio Financial Services Ltd, formerly Reliance Strategic Investments Limited, was separated from its parent company, Reliance Industries.

In comparison to the discovery price of Rs 261.85 per share last month after the demerger, JFSL listed for Rs 265 per share on the BSE and Rs 262 per share on the NSE on Monday. The stock is presently the 51st component of the Nifty50 and the 31st component of the Sensex.

After Bajaj Finance (Rs 4.27 lakh crore) and Bajaj Finserv (Rs 2.36 lakh crore), JFSL has the third-largest NBFC market capitalization in the nation with a share price of Rs 239,20. Jio Financial ranks 34th in terms of market valuation, ahead of behemoths like Tata Steel, Coal India, and SBI Life.

The shares of JFSL will be allowed to trade on the exchange under the T Group of Securities, according to a statement made by BSE last week. The stock will spend 10 trading days in the Trade-for-Trade section.

Trade-to-Shares in the trade area of the stock market can only be purchased and sold in person. This implies that a stock cannot be delivered on the same day. 

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