BSE Defers Removal Of Jio Financial Services From Indices To September 1

Reliance Industries' demerged financial unit was earlier slated to be removed from the Nifty 50 and Sensex on August 24, however, it was postponed as the stock kept hitting the lower circuit

At 1.20 p.m., the Jio Financial Services shares were trading at Rs 222.00 a piece, up 2.83 per cent from its previous closing price. 

Source : Getty

Jio Financial Services Ltd (JFSL) will now be removed from the Sensex and other BSE indices on September 1, informed the S&P Dow Jones Indices on Fridday. This was after the firm's stock hit the lower circuit on both August 24 and 25. Reliance Industries' demerged financial unit was earlier slated to be removed from the Nifty 50 and Sensex on August 24, however, it was postponed to August 29 as the stock kept hitting the lower circuit after being listed on August 21. 

“Since the stock has hit the lower circuit limit for two consecutive days, the removal of JFSL from all the S&P BSE Indices will be postponed by another three days. JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on September 1,” the S&P Dow Jones Indices said in a release on Friday.

"Additionally, should JFSL not hit the lower circuit limit on either of the next two days, but hits the lower circuit limit on the third day, the removal of JFSL from all the S&P BSE Indices will be postponed. Any postponement of removal will be communicated as soon as possible," it added. There has been no official confirmation from NSE Indices yet, however, the current methodology for demergers indicates the same postponement. 

In the early morning session on Friday, shares of Jio Financial Services saw slight gains. According to a Moneycontrol report, block deals involving four grouped transactions saw the JFSL's  64.6 million shares changing hands. 

At 1.20 p.m., the share was trading at Rs 222.00 a piece, up 2.83 per cent from its previous closing price. 

On August 24, about 17.4 million Jio shares were traded through clustered transactions on various exchanges, as per a Bloomberg report. The identities of the buyers and sellers for both of these transactions have not been disclosed at this time, it said. 

Over the course of the last three sessions, the stock had encountered a decline of approximately 13.2 per cent, said the report. Adding analysts monitoring the stock's performance have suggested that this decrease might be influenced more by technical factors rather than underlying fundamentals.

Jio Financial Services made its debut on the stock exchanges on August 21, positioning itself as India's second-largest listed non-banking financial company, trailing only Bajaj Finance. Analysts are of the opinion that Jio Financial Services has the potential to engage in a wide spectrum of financial services, encompassing activities such as lending, digital broking, insurance, mutual funds, and payments.

According to a PTI report on Thursday, the company commands a market valuation of Rs 1,37,167.41 crore. In four days, the company's market valuation has declined by Rs 22,776.52 crore.

Last month, Jio Financial Services Ltd (JFSL) completed its separation from Reliance Industries. Reliance Industries underwent a demerger of its financial services division, transferring it to RSIL (Reliance Strategic Investments Ltd), subsequently rebranded as JFSL. As part of this process, shareholders received one share of JFSL for every share of Reliance they owned.