Jio Financial Services To Be Removed From Sensex On September 1

Jio Financial Services To Be Removed From Sensex On September 1

SUMMARY

Jio Financial Services was initially scheduled to be delisted on August 23, just two days after its listing

On August 31, the stock rose for the third straight session and closed at an upper circuit of 5%, reaching INR 242.50 per share

Jio Financial Services, which spun off last year, is focused on lending, insurance, payments and investments

Jio Financial Services (JFS), the demerged financial business arm of Reliance Industries, will be removed from the BSE, the index said on Thursday (August 31).

“…effective prior to the open of trading on Friday, September 01, 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,” the BSE said.

The stock was initially scheduled to be delisted on August 23, just two days after its listing on August 21. However, the plan was delayed by the exchanges since Jio Financial Services remained locked in the lower circuit.

On August 31, the stock rose for the third straight session and closed at an upper circuit of 5%, reaching INR 242.50 per share. Per Nuvama Alternative Research, JFS constitutes 1.1% of Sensex’s weight, potentially leading to a passive selling of about 60 Mn shares (worth approximately $180 Mn).

Nuvama said that Jio Financial won’t be removed from Nifty indices until the newly formed entity avoids price limits (upward or downward) for two consecutive days. The research firm said Nifty would release a press statement confirming the exclusion only if it avoids price band breaches for two consecutive days. They won’t communicate during this period.

In contrast, MSCI and FTSE indices will retain Jio Financial Services without any impact on inflow or outflow.

At the 46th Annual General Meeting (AGM) of Reliance Industries on Monday (August 28), chairman Mukesh Ambani said that JFS will have products in the payments and insurance segments in India besides being in the asset management business.

“In payments, JFS will consolidate its payment infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital adoption,” said Ambani, adding that JFS products will not only compete with current industry benchmarks but also new-age features such as blockchain-based platforms and the central bank digital currency (CBDC).

JFS came into being last year after RIL announced the demerger of its financial services business and the spin-off of Reliance Strategic Investments as Jio Financial Services.

Ambani had also claimed that JFS had become the world’s highest-capitalised financial services platform at inception, before the delisting announcement. The company is focused on lending, insurance, payments and investments.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Jio Financial Services To Be Removed From Sensex On September 1-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Jio Financial Services To Be Removed From Sensex On September 1-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Jio Financial Services To Be Removed From Sensex On September 1-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Jio Financial Services To Be Removed From Sensex On September 1-Inc42 Media
Jio Financial Services To Be Removed From Sensex On September 1-Inc42 Media
You’re in Good company