Instead of August 23 as previously stated, Jio Financial Services Limited (JFSL) shares will now be removed from the Nifty 50 and Sensex on August 28. The exclusion occurs as a result of the newly-listed stock hitting lower circuit for two straight sessions following a quiet listing on August 21.
The removal of Jio Financial Services from all S&P BSE indices following its listing on Monday, August 21, 2023, as a result of its spin-off from its parent company, Reliance Industries, was recently announced by Asia Index Private Limited (AIPL), according to a circular released by the BSE on Tuesday, August 22.
The leading provider of financial market indices in the world, S&P Dow Jones Indices LLC, and the BSE have partnered to form Asia Index Pvt. Ltd.
The recent lower circuit hitting for JFSL is known to AIPL. The index committee has decided to delay the removal of JFSL from all the S&P BSE Indices by another 3 days because the stock hit lower circuit limit on Monday, August 21, 2023, and Tuesday, August 22, 2023.
Before the start of trading on Tuesday, August 29, 2023, JFSL will be eliminated from all S&P BSE Indices. The removal date will be postponed by an additional three days if JFSL continues to touch lower circuit over the following two days, said the circular.
The removal of JFSL from all S&P BSE Indices will also be delayed by a further three days if it doesn’t hit the lower circuit limit on either of the next two days but does on the third day. Any removal postponement will be disclosed as soon as practicable, and any modifications to this strategy will be made known through the regular channels, according to BSE.
According to the BSE, JFSL shares will be permitted for trading on the exchange in the T category of securities starting on Monday, August 21, 2023. For ten trading days, the share price of Jio Financial Services will be in the “Trade-for-Trade” zone. Because intraday trading is prohibited in this section, all transactions—whether on the buy or sell side—must be for delivery-only.