The period for exclusion of shares of Jio Financial Services (JFSL) from Sensex and other indices has been extended till August 31.
The move comes after JFSL shares hit the lower circuit limit of 5 per cent for two consecutive days, according to a Mint report.
Before the commencement of trading on September 1, JFSL stock will be delisted from all S&P BSE indices including Sensex, Sensex 50, BSE 100, BSE 500.
“As the stock has hit the lower circuit limit on two consecutive days i.e. August 24 and August 25, the delisting of JFSL from all S&P BSE indices will be deferred for next three days. JFSL will now be delisted from all the indices. S&P BSE Indices will be effective before the start of business on Friday, September 1,” BSE Indices said in a circular.
The circular further states that if JFSL does not reach the lower circuit limit on any day in the next two days, but does reach the lower circuit limit on the third day, the delisting of JFSL from all S&P BSE indices will be deferred. Mint report.
On 21 August, the shares of JFSL got listed on the stock exchanges after it was demerged from Reliance Industries (RIL).
On August 18, JFSL shares hit the lower circuit for the fifth day, but the stock recovered and was last trading in the green.
Since JFSL will be removed from all indices, index funds that received JFSL shares upon demerger will now be forced to sell JFSL shares.
Experts said around 120 million JFSL shares need to be sold by index funds as they adjust their portfolios.
JFSL shares were trading at Rs 218 at 2:08 pm.