As shares of Jio Financial Services (JFSL), the demerged financial services unit of Reliance Industries, hit the lower circuit for the second consecutive day on Tuesday, after its listing on Monday, the plan to remove it from all major indices of the BSE has been deferred by three days.
"Since the stock has hit lower circuit limit for 2 consecutive days i.e., Monday, August 21, 2023, and Tuesday, August 22, 2023, the Index Committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another 3 days," a statement from Asia Index Pvt Ltd read.
As it was listed, BSE Sensex and NSE Nifty added JFSL to their pack. This has been done to ensure price stability and limit volatility in shares of Reliance Industries as part of the revised methodology of the exchanges to treat demergers.
"JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Tuesday, August 29, 2023," the index provider added.
If the stock continues to hit the lower circuit for the next two days, the removal date will be deferred by another three days.
"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."
Shares of the company listed at Rs 262 on the NSE and further climbed to Rs 262.05, on Monday. However, it closed at Rs 251.75 apiece on Monday, largely due to selling by passive index funds.
As selling continued on Tuesday, it hit the lower circuit again, closing at Rs 236.45.
JFSL is currently part of the major indices of the BSE and NSE, including the Sensex and Nifty 50.