JFSL removal postponed to August 28 amid circuit limit hits
What's the story
The removal of Jio Financial Services (JFSL) from the Nifty 50 and Sensex indices has been postponed. It is because the stock reached its circuit limit for two consecutive days after listing. Originally scheduled for August 24, the exclusion date has now been deferred by three trading days. JFSL will be removed from all indices before the opening bell on August 29.
Details
S&P Dow Jones Indices announced the JFSL exclusion
S&P Dow Jones Indices has informed clients that JFSL will be removed from all S&P BSE indices effective prior to the start of trading on Tuesday (August 29). While there has been no formal confirmation from NSE Indices yet, the current methodology for demergers suggests the same outcome.
What Next?
Demerger methodology has delayed JFSL's Nifty 50 exit
According to the current methodology for demergers, if the spun-off business or entity hits the price band on both days during the first two days of the three-day period, the exclusion date will be deferred by another three days. This rule is applicable to JFSL's removal from the Nifty 50.
Information
JFSL's position in FTSE, MSCI remains secure
JFSL will be excluded from NSE and BSE, but will still remain a constituent of FTSE and MSCI indices. However, there will not be any new buying or selling of shares.