BSE changes circuit filters for Jio Financial Services from 5% to 20%

Jio Financial Services Ltd’s shares were removed from all S&P BSE indices, including Sensex, before trading opened on Friday, September 1. Initially, Jio was set to be excluded from the indices after August 23 post its listing on 21 August, following its spin-off from its parent, Reliance Industries Ltd. 

However, as the stock was locked in lower circuits for several days, the exclusion was postponed. Over the past four days, the stock has consistently gained, reaching upper circuits and avoiding lower circuits. This signals its impending removal from the indices, including the BSE-30 indices.

The index funds, which received Jio Financial shares following the demerger from RIL, may be compelled to sell the shares following its removal from the index.

Jio Financial Services’ market capitalization at ₹1.48 trillion, makes it the third most-valued non-banking financial firm after Bajaj Finance and Bajaj Finserv.

The stock is also likely to be out of the T2T (trade-to-trade) segment by next week, said experts. Trade-to-trade is a stock segment where shares are traded only on a delivery basis.

Jio Financial Services aspires to be a full-services financial services company that would find robust support in its large capital base, experienced team, strong brand, group customer base, and technological capability, according to analysts.

The focus will be on digital lending, AMC (asset management company) and insurance businesses in the initial years, subject to regulatory approvals. It is also likely to benefit from the AAA rating of RIL which will help it lower the cost of funds and liabilities, they added. The company will also benefit from the experience of existing players, which will help it shorten its maturity cycle, according to analysts.

Updated: 02 Sep 2023, 04:39 PM IST