NSE announces exclusion of Jio Financial from Nifty indices from September 7

Shares of Jio Financial Services has been removed from Nifty indices on September 7 (Thursday), NSE said in a post-market hours release. "In accordance with the index methodology, as Jio Financial has not hit price band on two consecutive trading days on September 4 and September 5 at NSE, the index maintenance sub-committee (Equity) of NSE indices has decided to exclude it from various indices effective from September 7, 2023 (close of September 6, 2023)," it mentioned.

The listed indices included Nifty 50, Nifty 100, Nifty 200, Nifty 500, Nifty50 Equal Weight, Nifty100 Equal Weight, Nifty500 Multicap 50:25:25, Nifty Commodities, Nifty Energy, Nifty Commodities, Nifty India Manufacturing, Nifty Infrastructure, Nifty LargeMidcap 250, Nifty Low Volatility 50, Nifty Mobility, Nifty Oil & Gas, Nifty Total Market, Nifty100 ESG, Nifty100 Liquid 15 and Nifty100 Low Volatility 30.

It may be noted that if Jio Financial hits the price band on September 6 (Wednesday), the exclusion would not be deferred further, NSE further said.

NSE indices had announced inclusion of Jio Financial (spun-off entity) on account of demerger of financial services business from Reliance Industries Ltd (RIL) effective from July 20, 2023, the release stated.

The stock was removed from Sensex and other BSE indices last week. It 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 today settled 0.73 per cent higher at Rs 255.30 on NSE.

At RIL's 46th annual general meeting (AGM), Chairman and Managing Director Mukesh Ambani called Jio Financial as the fourth growth engine. He said the company's products would 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. Jio Financial 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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