Jio Financial Services lists on bourses today, shares hit 5% lower circuit: What happens next?

livemint.com:

Reliance Industries, made its stock market debut on August 21. The stock was listed at ₹265 per share on the BSE and ₹262 per share on the NSE against the discovered price of ₹ ₹261.85 apiece. However, the JFSL shares soon crashed 5 per cent to hit its lower price band of ₹251.75 on BSE.

On the NSE, too, it hit its 5 per cent lower price band of ₹248.90. As per the BSE, from Monday, August 21, 2023, JFSL shares are admitted to dealings on the exchange in the list of T group of securities. Jio Financial Services' share price will be in the "Trade-for-Trade" segment for 10 trading days.

Within this segment, intraday trading is not allowed means any trade either on the buy side or on the sell side, has to necessarily be for delivery only. Going forward, post-listing and three sessions later, the entity will be removed from the index. If it hits the price band in the first two days, its removal will be deferred by another three days, according to analysts.

‘’Any newly listed spun-off businesses will be initially included in a relevant index at a constant price, which is the difference between the demerged firm's closing price the day before the ex-demerger date and the price during a special pre-open session on the ex-demerger date,'' said Manish Chowdhury Head of Research, StoxBox ‘’Post-listing and three sessions later, this entity will be removed from the index. If it hits the price band in the first two days, its removal will be deferred by another three days,'' added Chowdhury. This means that after three days of being listed, the JFSL stock will be excluded from all indices at the price of its last trade.