Jio Financial Services To Be Removed From NSE Indices On September 7

Initially, the stock was scheduled to be removed from the indices on August 24. However, this removal date was subsequently postponed to August 29. The delay continued as stocks hit the lower circuit

Jio Financial Services (JFS) will be removed from NSE Indices from September 7, the National Stock Exchange informed in a press release on Tuesday. This is after all the BSE Indices removed the scrip on September 1. Jio Financial's shares were listed on the stock exchanges on August 21, following its demerger from its parent company, Reliance Industries.

Initially, the stock was scheduled to be removed from the indices on August 24. However, this removal date was subsequently postponed to August 29. The delay continued as the stock hit the lower circuit after being listed. 

"In accordance with the index methodology, as JIOFIN has not hit price band on two consecutive trading days on September 4, 2023 and September 5, 2023 at NSE, the Index Maintenance SubCommittee (Equity) of NSE Indices Ltd. has decided to exclude JIOFIN from various indices as listed hereunder effective from September 7, 2023 (close of September 6, 2023). It may be noted that if JIOFIN hits the price band on September 6, 2023, the exclusion shall not be deferred further" the NSE statement said. 

The stock will be removed from Nifty 50, Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty India Manufacturing and 13 other indices.

Although BSE indices have already excluded Jio Financial Services, both MSCI and FTSE are still incorporating the stock in their respective indices. On September 5, the stock closed at Rs 255.30 on the NSE, rising 0.73 per cent compared to the previous closing price.

With the removal of the stock from Indices, passive funds that track these indices will need to make adjustments to their portfolios, as per a Moneycontrol report. 

Earlier, BSE revised the circuit limit of Jio Financial Services to 20 per cent from the existing 5 per cent. The new limits will be effective from Monday, September 4. 

In the Annual General Meeting (AGM) held last month, Mukesh Ambani, the Chairman of Reliance Industries, unveiled plans for Jio Financial to venture into the insurance sector, offering a range of products including life, general, and health insurance. He emphasised that the company would harness the extensive customer base of 450 million mobile phone subscribers through its telecom subsidiary, Jio, to market these products, including payment services.