Jio Financial share price extends rally for fifth day, jumps over 8% to trade above listing price

livemint.com:

₹267.00 apiece on the BSE. Jio Financial Services was listed on the stock exchanges on August 21. The stock was listed at ₹265 apiece on the BSE and ₹262 per share on the NSE as compared to its discovered price of ₹261.85 apiece.

The price band for the Jio Financial shares was increased to 20% from 5% earlier by the stock exchanges. The shares of Jio Financial Services (JFS), the demerged arm of billionaire Mukesh Ambani-led Reliance Industries (RIL), are now likely to be excluded from the NSE indices including Nifty this week, after the revision in the circuit filter limits. The new circuit limits in JFS shares are effective from Monday, September 4.

A circuit filter mechanism is used by stock exchanges to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day. Read here: BSE changes circuit filters for Jio Financial Services from 5% to 20% JFS shares were removed from Sensex and other BSE indices last week on Thursday.

The exclusion from BSE indices was done after the JFS share price witnessed consistent gains in the previous sessions. As per the exchange norms, a spun off entity, to be excluded from indices, must have traded for two consecutive days without hitting any circuit limits. JFS was initially set to be excluded from the indices after August 23, post its listing on August 21, following its spin-off from its parent, Reliance Industries Ltd.

However, the stock was locked in lower circuits for several days and the exclusion was postponed. Also Read: In charts: Jio Financial Services’ promise of the future Analysts believe that with the high 20% circuit filter, Jio Financial Services shares may not be able to hit that limit. Hence, the exclusion of JFS