Jio Financial Services Ltd, the demerged non-banking financial services unit of Mukesh Ambani-led Reliance group, will be dropped from all the S&P BSE Indices, including Sensex, on September 1, the stock exchange BSE said on Thursday.
Earlier, the stock was slated to be removed from the indices on August 24. Later, it was postponed to August 29. The exclusion of the stock was postponed as it continued to hit the lower circuit.
Shares of Jio Financial Services Ltd (JFSL) got listed on the stock exchanges on August 21 due to its spin-off from parent Reliance Industries.
“…effective prior to the opening of trading on Friday, September 1, 2023, Jio Financial Services Ltd will be removed from all the S&P BSE Indices,” BSE said in a circular.
Asia Index, a joint venture between BSE and S&P Dow Jones Indices, noted that JFSL has not hit the lower circuit on August 29 and August 30. If JFSL had hit the lower circuit on the third day, August 31, the removal of JFSL from all the S&P BSE Indices would have been postponed.
Shares of Jio Financial rose 5 per cent to touch their upper circuit limit on the stock exchanges on Thursday.
“In order to provide certainty to clients, the Index Committee has determined that a 2 pm IST cut-off time will be applied for the lower circuit limit assessment. If JFSL does not hit the lower circuit before the cut-off time, the company will be dropped from all the S&P BSE Indices effective prior to the opening of trading on Friday, September 1,” the circular noted.
During the Annual General Meeting (AGM) on Monday, Reliance Industries Chairman Mukesh Ambani announced that Jio Financial Services will enter the insurance segment to offer life, general and health insurance products.
It will leverage the 450 million mobile phone subscribers’ base of the telecom arm, Jio, to sell its products, including payment services, he had stated.