Reliance’s Jio Financial Services LTD will be delisted from the BSE index on Sep 1, 2023

Reliance Industries’ subsidiary financial services company, Jio Financial Services, will be delisted from the BSE index on September 1, including the 30-piece Sensex index, the Bombay Stock Exchange announced on 31 August.

From the market opening on Friday, 1 September 2023, Jio Financial Services Ltd will be removed from all S&P BSE indices after business hours on Monday, 21 August 2023, due to the separation of Jio Financial Services Ltd from its parent company Reliance Industries. ‘ said the BSE announcement.
The stock was originally scheduled to be removed on August 23, but the exchange delayed the removal of the stock as the stock continued to be closed in the lower market.

Stock rose for the third consecutive session on 31st August and closed at Rs 242.50, up 5% per share on the Bombay Stock Exchange.

According to Nuvama Alternative Research, JFS accounts for 1.1% of Sensex’s weight, which could result in the sale of 60 million shares worth $180 million.
Nuvama said that Jio Financial will not be removed from the Nifty index until the startup has avoided price (up or down) for two consecutive days.

For example, between August 31 and September 1, if the price limit is not breached, the exclusion will occur on September 4. This will lead to depletion of stocks in the Trade Trading (T to T) session on Sept. 4, which could facilitate exit next week.

Nuvama said Nifty Index will issue a statement confirming that subsidiaries will only be excluded if they do not breach the price for more than two consecutive days. They will not communicate at this time.
In contrast, the MSCI and FTSE indices keep Jio Financial in the index without any impact on entry or exit.

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