News

Published: August 28, 2023
Updated: August 28, 2023

Jio Financial Services Share Exclusion from Indices Delayed to August 31

In a recent development, the exclusion of Jio Financial Services (JFSL) shares from prominent indices, including the Sensex, has been pushed to August 31. This decision follows JFSL's shares hitting the lower circuit limits for two consecutive days, prompting this extension.

Change in Removal Date:

Originally slated for removal from all S&P BSE indices before the opening of trading on September 1, the process will now be deferred by an additional three days. As a result, JFSL will be eliminated from these indices effective prior to the start of trading on Friday, September 1, as confirmed by a circular from BSE Indices.

Circuit Limits Influence Removal:

The circular further outlines that if JFSL does not experience lower circuit limits in the following two days but encounters them on the third day, the removal from all S&P BSE Indices will be delayed. This cautious approach seeks to account for market fluctuations and the stock's performance.

JFSL's Recent Journey:

JFSL's journey in the stock market began on August 21 when it was listed after being demerged from Reliance Industries (RIL). However, the stock faced challenges, hitting the lower circuit for five consecutive days. Despite this, it managed to rebound and was recently trading in the green.

Impact on Index Funds:

With JFSL's impending removal from indices, index funds that had received shares during the demerger will now have to divest from these holdings. This adjustment will require around 120 million JFSL shares to be sold by these index funds, as they reshape their portfolios to align with the changing landscape.

Market Snapshot:

As of 2:08 pm, JFSL shares were trading at Rs 218, highlighting the evolving nature of the stock's value within the market. The decision to postpone the removal of JFSL shares from key indices underscores the importance of carefully managing market events. The evolving scenario presents challenges and opportunities for both investors and index funds, as they navigate the impact of JFSL's presence within the financial landscape.