FTSE reverses decision: Jio Financial stays in global indices

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FTSE reverses decision, Jio Financial Stays in Global Indices

In a significant turn of events, Jio Financial Services, the independent entity stemming from Reliance Industries Ltd helmed by Mukesh Ambani, will maintain its presence in the FTSE All-World index and various other global indices. FTSE Russell, as indicated in a statement released on Friday, confirmed this decision.

This determination followed the announcement of Jio Financial shares commencing trading on Monday via both BSE and NSE platforms.

A communication on BSE informed, “Effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) shall be officially listed and granted permission for trading on the Exchange in the list of T Group of Securities.”

According to FTSE’s assessment, Jio Financial will continue with its initial share issuance figure of 6,765,591,509 and retain an investability weighting of 49.66% within the FTSE All-World index.

FTSE Russell’s subsequent statement clarified, “Taking into consideration the updated exchange information disclosed on August 18, 2023, confirming Jio Financial Services’s listing date as August 21, 2023, the previous decision to remove Jio Financial Services from the indexes effective August 22, 2023, has been rescinded. Consequently, Jio Financial Services will continue to be part of the index, retaining an unchanged total share issue of 6,765,591,509 shares and an unaltered investability weighting of 49.66%.”

The situation took a different course on Thursday when FTSE Russell had initially announced the exclusion of Jio Financial Services from multiple FTSE Indices due to its failure to initiate trading within 20 business days.

A statement issued by FTSE Russell highlighted that the company had also not communicated a definite trading date since its inclusion on July 20. This omission’s implications were set to be enacted from August 22 onward.

As per the notice, Jio Financial Services was to be excluded from FTSE RAFI All World 3000 Index, FTSE RAFI All World 3000 Index – QSR, FTSE RAFI Emerging Index, and FTSE RAFI Emerging Index – QSR.

At present, Jio Financial Services is enlisted under a placeholder ticker, with no trading activity recorded for the stock.

“The stock will remain under the trade-for-trade segment for a period of 10 trading days,” further specified the BSE notice.

Jio Financial Services’ shares were distributed to eligible RIL shareholders at a 1:1 ratio, as per the record date of July 20.

The value of a single Jio Financial Services share was determined at ₹261.85 after undergoing a special pre-open call auction session on the NSE on July 20.

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