Jio Financial shares to be excluded from Sensex, other BSE indices from Friday

Shares of Jio Financial Services Ltd (JFS), the demerged financial business of Reliance Industries Ltd, will be excluded from Sensex and all other S&P BSE indices prior to the open of trading on Friday. The index committee had suggested that should JFS hit lower circuit on Thursday, August 31, the removal of JFS from all the S&P BSE Indices will be postponed. In order to provide certainty to clients, it applied 2 PM IST cut-off time for the lower circuit limit assessment. Shares of JFS were trading 0.60 per cent higher at Rs 234.10 on BSE.

The index committee noted that JFS had not hit the lower circuit on Tuesday, August 29, and Wednesday, August 30. "If JFSL does not hit the lower circuit before the cut-off time, the company will be dropped from all the S&P BSE Indices effective prior to the open of trading on Friday, September 01, 2023 as announced via Notice No: 20230825-15," it had said earlier.

Nuvama Institutional Equities said its assessment suggests approximately 60 million shares will be sold by Sensex passive funds. JFS got listed at Rs 265 apiece on August 21, a 1.18 per cent premium over its discovered price of Rs 261.85 apiece on July 20. The stock is being admitted to dealings in the 'T' group securities on BSE.

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JFS plans to consolidate its payments infrastructure with offerings for both consumers and  merchants. Besides, the company is looking to enter the insurance segment to offer life, general and health insurance products. The company has presence in AMC business via partnered with BlackRock.

At RIL's 46th AGM, Chairman and Managing Director Mukesh Ambani called Jio Financial as the fourth growth engine. He said JFS products will not just compete with current industry  benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC.

"They will adhere  to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times. JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a  seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way," Ambani said.

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