MUMBAI – The decision to remove Jio Financial Services Ltd (JFSL) from all key indices of BSE, including Sensex has been deferred by three days, as the stock hit the lower circuit for two consecutive days, Asia Index Pvt Ltd said in a release.
“JFSL will now be removed from all the S&P BSE indices effective prior to the opening of trading on Tuesday, August 29, 2023. Should JFSL continue to hit the lower circuit in the next two days, the removal date will be deferred by another three days,” the index provider said.
In case Jio Financial does not hit the lower circuit limit on either of the next two days, but hits the circuit limit on the 3rd day, the removal of the stock from all the indices will be deferred by another three days.
Jio Financial, the demerged financial services business of Reliance Industries, officially got listed on the exchanges on Monday.
After listing at a slight premium to its derived price, the stock reversed the trend and ended in the lower circuit of 5%, due to likely selling by passive index funds.
The selling continued on Tuesday, as the stock was locked in the 5% lower circuit at Rs 236.45. Shares of parent Reliance Industries ended flat at Rs 2,519.40.
JFSL is currently part of key indices of the BSE and NSE, including the Sensex and Nifty 50.
Jio Financial was added to key indices on July 20 for a temporary period, to give passive and active funds holding RIL stock, an opportunity to trade in the demerged entity.
It was added at a constant price of Rs 261.8, which was derived through a special pre-open session conducted by the exchanges on RIL stock.
JFSL was temporarily added based on the revised rules in index methodology while considering corporate actions such as mergers/demergers.
To be part of any index, the stock must fulfill the eligible criteria set out by index providers for each of the indices.
