After BSE, Jio Financial Services To Be Excluded From NSE Indices

Reliance Industries Ltd’s (RIL’s) demerged arm Jio Financial Services Limited (JFSL) will be excluded from the NSE indices, including the benchmark Nifty 50, from September 7. 

“In accordance with the index methodology, as JIOFIN has not hit price band on two consecutive trading days on September 4, 2023 and September 5, 2023 at NSE, the index maintenance sub committee (equity) of NSE Indices has decided to exclude JIOFIN from various indices as listed hereunder effective from September 7, 2023,” said NSE in a statement. 

It added that the exclusion shall not be deferred further even if Jio Financial hits the price band on September 6.

Besides Nifty 50, the stock will be removed from Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty India Manufacturing and 13 other indices. RIL spun off Jio Financial as a separate entity in July this year, after which the latter became a publicly listed entity in late August. 

The company had a lacklustre start on the bourses, hitting the lower circuit for five straight sessions before gaining at the fag end of August. However, the stock has pared losses since then. 

Shares of Jio Financial continued their rise on Tuesday as well, gaining 0.73% to end the session at INR 255.30 on the NSE. The stock touched an intraday high of INR 259.7.

Meanwhile, as per Nuvama Alternative Research, Jio Financial’s delisting could reportedly see the sale of nearly 105 Mn shares worth $324 Mn by Nifty passive trackers. The research firm also said that NSE would emulate BSE’s 20% filter even as retail investors await NSE’s price band circular for the stock.

The development comes days after the BSE removed Jio Financial from its indices. However, MSCI and FTSE indices continue to retain Jio Financial without any impact on inflow or outflow.

Amid all this, Jio Financial appears all set to shake up the financial services industry. At the conglomerate’s 46th Annual General Meeting (AGM) last month, chairman Mukesh Ambani unveiled a blueprint of the company saying it will launch products in the payments and insurance segments, apart from its already announced foray into the asset management space. 

Jio Financial will also explore blockchain technology and the central bank digital currency (CBDC) to build new-age products. 

As per the company, Jio Financial became the world’s highest-capitalised financial services platform at the time of its inception before the delisting announcement. 

Be it testing a soundbox for payments or building products in the general insurance and health insurance spaces, Jio Financial has a plethora of offerings up its sleeves and this has sent alarm bells ringing across India’s burgeoning fintech ecosystem. The Reliance Group company will take on startups like Zerodha, Paytm Money, INDMoney and Groww, among others.