Jio Financial To Remain In FTSE Indices, To Be Added To MSCI Global Standard Index On August 23

FTSE Russell had earlier announced the removal of Jio Financial Services from its FTSE indices as the company had not started trading within the 20 business days following its inclusion in indices.

Jio Financial Services (JFS) will remain on the FTSE Russell indices. This decision followed closely after Reliance Industries Ltd announced the listing date for Jio Financial Services. On Thursday, FTSE Russell announced the removal of Jio Financial Services from its FTSE indices as the company had not started trading within the 20 business days following its inclusion in the indices.

The removal from the FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index, and FTSE Emerging Index was slated to take effect from August 22. However, on Friday, Reliance announced that Jio Financial Services will be listed on the stock exchanges in India on August 21. 

The UK-based global benchmark financial indexes provider on Friday stated that on the basis of the recent update from the exchange, regarding Jio Financial Services' listing date of August 21, 2023, it will not go ahead with its decision to remove the company from the indexes.

Last month, Mukesh Ambani's Reliance Industries demerged JFS, setting its stock price at a notably higher-than-anticipated Rs 261.85. This valuation, achieved through a special trading session, placed JFS worth around $20 billion.

The stock is scheduled to join the MSCI Global Standard Index on August 23, the index informed via a separate notification on Friday. 

JFS is part of major Indian indexes, including the benchmark Nifty 50, as well as some global indexes post its demerger from Reliance Industries, however, it cannot be traded until it is listed.

"Trading Members of the Exchange are hereby informed that effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities," a BSE notice said on Friday. Adding that the scrip will be in the trade-for-trade segment for 10 trading days.

The notification also informed that last week, the shares of JFS were deposited into the demat accounts of its shareholders. This distribution was part of the demerger plan, where each Reliance Industries shareholder received one share of JFS for each Reliance Industries share held.

The creation of this new, separate entity was announced by Reliance in October, last year. JFS, operating through its subsidiaries and joint ventures, is set to offer a wide array of financial service solutions catering to both consumers and merchants. Its primary focus will be on the NBFC and credit market segments. Additionally, it has strategic intentions to expand its presence into sectors like insurance, digital payments, and asset management.

Last month, JFS announced a partnership with Blackrock, the world's largest asset manager. The partnership aims to establish a mutual fund company, introducing a fresh player into the Indian market. This venture is targeting an initial investment of $300 million.