Stock exchanges on Tuesday deferred the removal of Jio Financial Services Limited (JFSL) from its key indices by three more days after the stock hit a lower circuit limit for two consecutive days after listing.
Jio Financial Services Limited (JFSL) stock continued its downward rally for the second straight session today. The shares of JFSL closed at Rs 239.20 on BSE, and at Rs 236.45 on the National Stocks Exchange (NSE).
In a notice, BSE stated, “Asia Index Private Limited (AIPL) recently announced that effective prior to the open of trading on Thursday, August 24, 2023, Jio Financial Services Ltd will be removed from all the S&P BSE Indices following its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries.”
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“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,” the stock exchange added.
“JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Tuesday, August 29, 2023.”
The stock exchange added that if JFSL continues to hit the lower circuit on the next two days, the removal date will be deferred by another three days.”
Jio Financial Services Ltd, formerly known as Reliance Strategic Investments Limited, was demerged from its parent entity Reliance Industries in a special pre-open session on July 20.
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JFSL listed at Rs 265 per share on the BSE and Rs 262 apiece on the NSE on Monday against the discovered price of Rs 261.85 apiece last month after the demerger. The stock is currently the 31st constituent in the Sensex and the 51st constituent in the Nifty50.
The market capitalisation of JFSL at Rs 239.20 per share stands at 1.50 lakh crore, making it the third-largest NBFC in the country after Bajaj Finance (Rs 4.27 lakh crore) and Bajaj Finserv (Rs 2.36 lakh crore). Jio Financial is the 34th highest-valued company, above giants such as Tata Steel, Coal India, and SBI Life.
Last week, BSE said that the shares of JFSL will be admitted to dealings on the exchange in the list of T Group of securities. The scrip will be in the Trade-for-Trade segment for 10 trading days.
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Trade-to-Trade is a stock segment where shares are traded only on a delivery basis. This means that the delivery of a stock cannot be taken on the same day. This is done to prevent volatility and price manipulation.