Jio Financial shares are to be removed from BSE indices on September 1

The bourses twice extended the removal of JFSL shares from the indices after the shares hit the lower circuit for four consecutive sessions post-listing.
For representational purposes. (File Photo)
For representational purposes. (File Photo)

MUMBAI:  Jio Financial Services (JFS), the demerged financial services unit of Mukesh Ambani-led Reliance Industries, will be removed from all the S&P BSE Indices, including Sensex, on September 1.

The stock was slated to be dropped from the indices on August 24 but its removal was postponed to August 29. The bourses twice extended the removal of JFSL shares from the indices after the shares hit the lower circuit for four consecutive sessions post-listing.

However, shares of JFS rose 5% to touch their upper circuit limit on the stock exchanges on Thursday. The scrip commanded a market capitalisation of `1.47 lakh crore on Thursday against `1.68 lakh crore on the day of its listing. Asia Index, a joint venture between BSE and S&P Dow Jones Indices, noted that JFSL did not hit the lower circuit on August 29 and August 30. 

If JFSL had hit the lower circuit on the third day, August 31, the removal of JFSL from all the S&P BSE Indices would have been postponed. “In order to provide certainty to clients, the Index Committee has determined that a 2 pm IST cut-off time will be applied for the lower circuit limit assessment. If JFSL does not hit the lower circuit before the cut-off time, the company will be dropped from all the S&P BSE Indices effective prior to the opening of trading on Friday, September 1,” said BSE in a circular on Thursday.

However, the stock will not be out of the NSE on Friday. A stock has to trade without hitting the lower circuit in two out of three trading sessions to get removed from the NSE index. On the NSE, shares of JFS were also at a 5% upper circuit limit at `231.25 apiece.

Jio Financial Services 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 `261.8, which was derived through a special pre-open session conducted by the exchanges on RIL stock. JFS shares were listed at `265 per share on the Bombay Stock Exchange and `262 per share on the National Stock Exchange against the discovered price of `261.85 apiece.

JFS rises 5% to hit the upper circuit limit 

Shares of JFS rose 5% to touch their upper circuit limit on exchanges on Thursday. Asia Index noted that JFSL did not hit the lower circuit on August 29 and August 30. If JFSL had hit the lower circuit on August 31, the removal of JFSL from all S&P BSE Indices would have been postponed

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