BSE Revises Jio Financial Services’ Circuit Limit To 20%, Effective From September 4

In addition to Jio Financial, nine other companies saw their price band being revised. Among these were RailTel and India Pesticides, which saw a revision of rates to 10 per cent.

The BSE has revised the circuit limit from the existing 5 per cent to 20 per cent. ( Image Source :Getty )

The Bombay Stock Exchange has made changes to the circuit limit of Jio Financial Services, the recently demerged financial services unit of Reliance Industries. The BSE has revised the circuit limit from the existing 5 per cent to 20 per cent, with the new limit to be implemented from Monday, September 4, the exchange revealed in it’s notification on Saturday. 

This revision will help ensure stock prices don’t fluctuate beyond the prescribed limits during a session, reported PTI. The report added that market analysts expect the stock to be out of the trade-to-trade segment next week. Notably, circuit filters are used as a measure to ensure the stock doesn’t breach the prescribed upper or lower limit. 

In addition to Jio Financial, nine other companies saw their price band being revised. Among these were RailTel and India Pesticides, which saw a revision of rates to 10 per cent. Notably, the BSE uses a circuit filter mechanism to keep a tab on excessive volatility in a scrip. This represents the maximum fluctuation a stock is permitted in a day. 

Further, the stock of Jio Financial was removed from all the BSE indices including Sensex, last week on Friday. Jio Financial entered the market when it’s shares got listed on the exchanges last month on August 21, as a result of it’s spinoff from parent group Reliance, owned by Mukesh Ambani. 

The stock was earlier in line to be removed from the indices on August 24. This was postponed to August 29, but the exclusion of the stock was postponed by the exchanges as the stock continued to stay in the lower circuit. However, the stock has gained and touched upper circuits in the last three trading sessions, the report noted. This marked it’s removal from the indices. 

Last month during the annual general meeting (AGM) of Reliance Industries, Chairman Mukesh Ambani announced that Jio Financial will cater to the life, general, and health insurance segment. Additionally, Ambani informed that the non-banking financial services company will use the telecom company, Jio’s 450 million mobile phone subscribers base to sell it’s payment services and other products.