Image Source : REPRESENTATIVE IMAGE BSE changes Jio Financial Services
Leading stock exchange BSE has revised the circuit limit of Jio Financial Services, the demerged non-banking financial services unit of Mukesh Ambani-led Reliance group, to 20 per cent from the existing 5 per cent.
The new limits will be effective from Monday, September 4, according to a notification issued by BSE.
The move would ensure stock prices do not fluctuate beyond a prescribed level during a session. Further, market experts believe that the stock will be out of the trade-to-trade segment next week.
Apart from Jio Financial, the price band for nine companies, including RailTel and India Pesticides, has been revised to 10 per cent. A circuit filter mechanism is used by BSE to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.
Additionally, the stock of Jio Financial was removed from all the BSE Indices, including the benchmark Sensex, on September 1.
Shares of Jio Financial got listed on the stock exchanges on August 21 due to its spin-off from parent Reliance Industries.
Earlier, the stock was slated to be removed from the indices on August 24. Later it was postponed to August 29. However, the exclusion was delayed by exchanges as it continued to be locked in the lower circuit.In the past three trading sessions, the stock has gained, touching upper circuits and avoiding lower circuits. This indicated its imminent removal from the indices.
During the Annual General Meeting (AGM) last month, Reliance Industries Chairman Mukesh Ambani announced that Jio Financial will enter the insurance segment to offer life, general, and health insurance products.
It will leverage the 450 million mobile phone subscribers’ base of the telecom arm, Jio, to sell its products, including payment services, he had stated.
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