Postponement of Jio Financial Services’ removal from Nifty 50 and Sensex

Jio Financial Services’ exclusion from the Nifty 50 and Sensex indices has been delayed until August 28 due to its poor performance in the stock market.

Jio Financial Services Limited (JFSL) is set to be excluded from the Nifty 50 and Sensex indices on August 28, instead of the previously indicated date of August 23. This decision has been made due to JFSL’s poor performance in the stock market since its listing on August 21.The exclusion of JFSL from the indices was announced by Asia Index Private Limited (AIPL), a joint venture between S&P Dow Jones Indices LLC and the BSE. In a circular issued on August 22, the BSE stated that JFSL would be removed from all the S&P BSE indices as a consequence of its spin-off from its parent company, Reliance Industries. AIPL has taken note of JFSL’s continuous decline in share price, as the stock has hit the lower circuit limit for two consecutive days, on August 21 and August 22.

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In light of this, the index committee has decided to postpone the removal of JFSL from the indices by an additional three days. According to the circular, JFSL will now be removed from all the S&P BSE Indices on August 29. However, if the stock continues to hit the lower circuit limit in the upcoming two days, the removal date will be pushed back by another three days. Similarly, if JFSL does not hit the lower circuit limit in the next two days but hits it on the third day, the removal will be deferred by another three days. The BSE has emphasized that any changes to this approach will be communicated promptly through the standard channels. As of August 21, JFSL shares have been included in the T group of securities on the exchange, allowing them to be traded. However, these shares will remain in the “Trade-for-Trade” segment for the next ten trading days, meaning that intraday trading is not permitted.

Jio Financial Services’ exclusion from the Nifty 50 and Sensex indices has been delayed until August 28 due to its poor performance in the stock market. The decision was made by AIPL, and the removal date may be further postponed if the stock continues to underperform. The BSE has provided clear guidelines for the trading of JFSL shares during this period.