Jio Financial Services Ltd: Jio Financial Services Limited, a financial services company started separately from Mukesh Ambani-led Reliance Industries.jfsl) to the National Stock Exchange (NSE) will be removed from various indices including Nifty 50 from Thursday. Shares of Jio Financial were listed on NSE along with BSE on August 21. After separation from Reliance Industries, it was listed in the market as a separate company. As per the listing provisions, JFSL was made a part of several indices of NSE to avoid high fluctuations in share price. This helped in monitoring the share price.
For this reason it was decided to separate the company
After the share price of Jio Financial did not touch the upper or lower circuit in two consecutive trading sessions, it has been decided to exclude it from the indices. NSE’s subsidiary NSE Indices Limited said in a statement that if the price of Jio Financial does not touch the circuit level even on September 6, then the decision to exclude this stock from the index will not be postponed. If this happens, JFSL will be removed from Nifty 50, Nifty 100, Nifty 200 and Nifty 500 indices.
BSE increased the circuit limit to 20 percent
Jio Financial Services (Jio Financial Services) has been revised from the existing five percent to 20 percent. 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 company’s share price does not fluctuate more than a certain limit in a session. Apart from this, market experts believe that this stock will be out of the ‘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.
Arrangements made to control excessive fluctuations in shares
To control excessive volatility in a stock, the ‘circuit’ system is used by BSE. This is the limit of maximum volatility 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 stock was to be removed from the indices on 24 August. Later it was postponed till 29 August. However, it continued to touch the lower circuit further delaying its delisting from the exchanges. The stock of the company has gained momentum in the last three trading sessions and has 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 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 was listed on NSE along with BSE on August 21. It was made a part of the indices to provide a kind of certainty in its share prices. Earlier, it was to be removed from the indices on August 24 itself, but in the first few trading sessions after the listing, it kept touching the lower circuit. In such a situation, the stock market had postponed its separation from the indices till August 29.
Jio Financial Services’ net worth Rs 1.2 lakh crore: Ambani
Reliance Industries Limited (RIL) Chairman Mukesh Ambani had said in the company’s AGM 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.