Jio Financial Services Exclusion From BSE Indices Delayed To August 29 As Stock Hits Lower Circuits

Due to back-to-back lower circuits since listing, the exclusion of new entrant Jio Financial Services on S&P BSE indices has been delayed by another three days. Now, Jio Financial Services will be removed from BSE indices with effect from August 29, compared to the earlier date of August 24, 2023. BSE has notified the investors about the postponement on Tuesday. The stock ended at a 5% lower circuit.

In a notification, BSE said, " Since the stock has hit lower circuit limit for 2 consecutive days i.e., Monday, August 21, 2023, and Tuesday, August 22, 2023, the Index Committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another 3 days. JFSL will now be removed from all the S&P BSE Indices effective before the open of trading on Tuesday, August 29, 2023."

BSE said that the Asia Index Private Limited ("AIPL") is aware of the recent lower circuit hitting for JFSL.

It added that "Should JFSL continue to hit lower circuit on the next 2 days, the removal date will be deferred by another 3 days."

Further, BSE said, "Additionally, should JFSL not hit the lower circuit limit on either of the next 2 days, but hits the lower circuit limit on the 3rd day, the removal of JFSL from all the S&P BSE Indices will be deferred by another 3 days. Any postponement of removal will be communicated as soon as possible; any changes to this approach will be announced via the standard channels."

Jio Financial Services will be removed from indices like BSE Sensex, BSE 100, BSE Sensex 50, BSE 100 LargeCap TMC (INR), BSE SENSEX 50 TMC (INR), BSE 500, BSE 250 LargeMidCap Index (INR), BSE 200, BSE AllCap, BSE Energy, BSE Large-cap, BSE LargeMidCap, BSE India Manufacturing Index, BSE Dividend Stability Index, BSE 100 ESG Index (INR), BSE Oil& Gas, BSE Carbonex, and BSE Greenex.

The exclusion is because of its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries.

Earlier, the scheduled date for exclusion was set for August 24, 2023.

Asia Index is a 50-50 partnership between S&P Dow Jones Indices LLC, the world's largest provider of financial market indices, and BSE Ltd, Asia's oldest stock exchange and home to the iconic SENSEX index - a leading indicator of Indian equity market performance.

On Tuesday, Jio Financial Services share price ended at 5% lower circuit of Rs 239.20 apiece on BSE. The company lost over Rs 7,900 crore of market value in a single day. Currently, its market cap is at Rs 1,51,970.56 crore, becoming the third-largest NBFC after Bajaj Finserv and Bajaj Finance.

Jio Financial Services listed on August 21 at Rs 265 apiece, up by 1.20% from its fixed price of Rs 261.85 apiece in the price discovery session which was held last month. However, the stock ended at a 5% lower circuit to Rs 251.75 apiece on BSE.