Curated By: Business Desk
Last Updated: August 22, 2023, 16:50 IST
JFSL will now be removed from all the S&P BSE indices effective prior to the open of trading on Tuesday, August 29. (Representative image)
While there has been no formal confirmation from NSE Indices yet, current methodology for demergers indicate the same.
Jio Financial Services will be removed from the Nifty 50 and Sensex indices starting from August 29, which is a change from the previously mentioned date of August 24. This adjustment is due to the stock reaching its circuit limit on two consecutive days shortly after being listed.
Also Read: LIC Acquires 6.66% Stake in Jio Financial Services Through Demerger Process
“The index committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another three days. JFSL will now be removed from all the S&P BSE indices effective prior to the open of trading on Tuesday, August 29,” said S&P Dow Jones Indices in a communique to clients.
According to a report by Moneycontrol, while there has been no formal confirmation from NSE Indices yet, current methodology for demergers indicate the same.
“In case, during the first 2 days of these 3 days, if the spun off business/ entity hits the price band on both days, then the exclusion date shall be deferred by another three days,” NSE Indices had said in its press release on April 26.
As passive funds adjust their portfolios, the combined outflow will approximately be 145-150 million shares, encompassing both Nifty and Sensex, as per Nuvama Alternative & Quantitative Research.
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