Jio Financial share exclusion from Sensex postponed, again; new removal date September 1

The exclusion of Jio Financial Services (JFS) shares from Sensex and other BSE sectoral and thematic indices has been deferred to another three sessions, the index committee of Asia Index Private Limited suggested on Friday. JFS was supposed to be excluded from stock indices from August 24, which was later postponed to August 29.

"Since the stock has hit lower circuit limit for 2 consecutive days i.e., Thursday, August 24, 2023, and Friday, August 25, 2023, the removal of JFS from all the S&P BSE Indices will be postponed by another 3 days. JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Friday, September 01, 2023," Asia Index Private said in a release.

The index committee said should JFSL not hit the lower circuit limit on either of the next two days, but hits the lower circuit limit on the third day, the removal of JFS from all the S&P BSE Indices will be postponed.

"Any postponement of a removal will be communicated as soon as possible; any changes to this approach would be announced via the standard channels," it said.

Following the development, shares of Jio Financial Services were trading at Rs 222.70 on BSE, up 3.15 per cent.

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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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