Jio Financial Services UpdateMukesh Ambani (Mukesh Ambani)-led Reliance Group’s demerged non-banking financial services arm Jio Financial Services (Jio Financial Services) has revised the circuit limit from existing five per cent to 20 per cent. According to a notification issued by BSE, the new circuit limit will come into effect from Monday, September 4. This step will ensure that the share price of the company does not fluctuate more than a certain limit in a session. Apart from this, market experts believe that this stock will be out of ‘trade-to-trade’ segment next week. Apart from Jio Financial, the price band has been revised to 10 per cent for nine companies including RailTel and India Pesticides.
Arrangement made to control excessive volatility in the stock
The ‘circuit’ system is used by BSE to control excessive fluctuations in a stock. This is the limit of maximum fluctuations in a stock in a day. Apart from this, on September 1, Jio Financial’s shares were removed from all BSE indices including the benchmark Sensex. Jio Financial’s shares were listed on the stock exchanges on August 21 due to separation from parent company Reliance Industries. Earlier the company’s shares were to be removed from the indices on August 24. Later it was postponed till 29 August. However, its frequent lower circuit touches further delayed its delisting from the exchanges. The company’s shares have risen in the last three trading sessions and have touched the upper circuit limit. Last month, at the company’s annual general meeting, Reliance Industries Chairman Mukesh Ambani had announced that Jio Financial will enter the insurance sector and will offer life, general and health insurance products.
BSE had delisted
Jio Financial Services Limited (JFSL), the newly listed company of Reliance Group, was removed from all the indices including the benchmark index Sensex of the stock market BSE from September 1. BSE said in a circular on Thursday that JFSL will be delinked from all BSE indices before the start of trading on September 1. Financial services firm JFSL got listed on NSE along with BSE on 21 August. It was made a part of the indices to give a kind of certainty in its share prices. Earlier it was to be delinked from the indices on August 24 itself but it kept touching the lower circuit in the initial few trading sessions after the listing. In such a situation, the stock market had postponed the separation from these indices till 29 August.
The shares did not hit the lower circuit on August 29 and August 30.
Shares of Jio Financial, which was demerged from Reliance Industries and listed as a separate company, did not hit the lower circuit on August 29 and August 30. Even on Thursday, the shares of the company were successful in touching the upper circuit limit of five per cent. Keeping in view the stability in the company’s shares, the index committee of BSE has decided to remove it from the indices from Friday morning. Reliance Group chief Mukesh Ambani had said in the annual general meeting on Monday that Jio Financial would also foray into the insurance sector in the future, which would include general insurance and health insurance products along with life insurance.
Jio Financial Services’ net worth Rs 1.2 lakh crore: Ambani
Reliance Industries Limited (RIL) Chairman Mukesh Ambani said in the company’s AGM on Monday that Jio Financial Services is capitalized with a net worth of Rs 1.2 lakh crore. He claimed that it was one of the most capitalized start-up financial services platforms in the world. At the company’s annual general meeting, Ambani said ZFS will strengthen its payments infrastructure with a ubiquitous offering for both consumers and merchants, thereby promoting digital payments in India. He said that ZFS products will not only compete with existing companies in the industry, but also use features such as a ‘blockchain-based platform’ and CBDC.