Jio Financial Services Ltd (JFSL), the demerged financial services unit of Reliance Industries (RIL), will be dropped from all the S&P BSE indices, including Sensex, on September 1. This was announced by the stock exchanges 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 was postponed as it continued to hit the lower circuit.
JFSL was listed on the bourses on August 21 following the demerger from RIL.
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 would have been postponed again.
On Thursday, the shares of the company ended with gains of 0.41 per cent at Rs 233.65 after rising nearly 5 per cent to hit the day’s high of Rs 244.30. At close, the company had a market capitalisation of Rs 1,48,444.49 crore.
Since JFSL is a demerged company from RIL, which is a part of benchmark indices, it was made a part of the Sensex and Nifty to limit volatility. However, it is traded in the trade-for-trade segment where only delivery transactions are allowed. After its listing, the company had seen relentless selling.
