 "Jio Financial Services")
The exclusion of Jio Financial Services (JFSL) shares from Sensex and other indices has been extended to August 31.
The move comes after JFSL shares hit 5 per cent lower circuit limits for two more consecutive days, according to a report in the Mint.
Before the opening of trading on September 1, the JFSL stock will be removed from all S&P BSE indices, including Sensex, Sensex 50, BSE 100, BSE 500, among others.
"Since the stock has hit lower circuit limits for two consecutive days, i.e., August 24 and August 25, the removal of the JFSL from all the S&P BSE Indices will be postponed by another three days. The JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Friday, September 1," BSE Indices said in a circular.
The circular further stated that if the JFSL does 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 JFSL from all the S&P BSE Indices will be postponed, according to the Mint report.
On August 21, JFSL shares were listed on stock exchanges after a demerger from Reliance Industries (RIL).
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On August 18, JFSL shares hit lower circuit for the fifth day, but the stock recovered and was last trading in the green.
As JFSL will be removed from all indices, the index funds which received JFSL shares upon demerger, will now be forced to sell JFSL shares.
Experts said that around 120 million JFSL shares need to be sold by index funds as they adjust their portfolios.
At 2:08 pm, JFSL shares were trading at Rs 218.
