Jio Financial Services exclusion from stock indices deferred by 3 days. Full details

Asia Index Private Limited on Tuesday said its index committee has decided to postpone the removal of Jio Financial Services (JFS) from all the S&P BSE indices by another three days. JFS was supposed to be excluded from stock indices from August 24. But since shares of Jio Financial hit their lower circuit limit for two straight days of the three-day period, the exclusion date was deferred. 

Had not the stock hit circuits for two consecutive days of the spun-off entity, the spun-off entity would have been removed after the third trading day of such observation.  In a release, Asia Index Private Limited said it is aware of the recent lower circuit hitting for JFS.

Since the stock has hit lower circuit limit for two consecutive days i.e., Monday, August 21, 2023, and Tuesday, August 22, 2023, JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Tuesday, August 29, 2023. 

Watch: Jio Financial shares tank 15% in 3 days; hit lower circuit for 3 days straight; what's dragging the stock and what should investors, JFS shareholders do?

"Should JFSL continue to hit lower circuit on the next 2 days, the removal date will be deferred by another 3 days. Additionally, should JFSL not hit the lower circuit limit on either of the next 2 days, but hits the lower circuit limit on the 3rd day, the removal of JFSL from all the S&P BSE Indices will be deferred by another 3 days. Any postponement of a removal will be communicated as soon as possible; any changes to this approach would be announced via the standard channels," Asia Index Private Limited said.

At exclusion, Nifty index passive trackers could sell around 9 crore shares, which is equivalent to approximately $290 million. Alongside Sensex index trackers could sell 5.5 crore shares, which is equivalent to $175 million, Nuvama Institutional Equities said this week.

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