Dear Sharekhan Customer,

We’re happy to inform you that NSE will be conducting a Special Pre-Open Session (SPOS) in Reliance Industries Limited (RIL) on July 20 from 9 am to 10 am for stock price discovery.

The Context and Important Info
Reliance Industries Ltd. (RIL) announced the demerger of its financial services arm Reliance Strategic Investments, to be renamed as Jio Financial Services Limited.

Important Info with Dates:

• RIL shareholders to get 1 share of Reliance Strategic for every 1 share of RIL
• Record Date is July 20, Thursday, for the demerger of subsidiary Reliance Strategic Investments (JFSL)
• Effectively, July 19 is the last date to buy Reliance for JFSL shares
• Reliance Strategic Investments (JFSL) is soon to be listed on the Exchanges, but the listing date has not been announced yet

Treatment in Indices

• Jio Financial Services will be included in various indices at a Constant Price
  (Constant Price is the demerged entity’s closing price on T-1 day (in this case, July 19) and the difference between the close price of RIL on July 19, 2023, and open price of RIL discovered during SPOS on July 20 (Refer the NSE Press Release and BSE Press Release for further details).

Calculation of Constant Price:

• Assume RIL price is Rs 2800 on July 19 and discovered price is Rs 2600 on July 20.
• Then, Constant Price will be Rs 200 per share for Jio Financial Services.

What happens post listing of JFSL
The demerged business, Jio Financial Services, will subsequently be excluded from Indices on T+3 post listing.

Reliance Industries Ltd. in Futures & Options

Here is the summary of 2 NSE Circulars:

• All existing F&O Contracts of July, August and September to expire on July 19, 2023.
• Contracts will be re-introduced again of same expiry (July, August and September) from July 20 onwards.
• Based on price discovery on July 20, minimum 5 in-the-money strikes, 1 at-the-money strike, 5 out-of-the-money strikes will be made available.

For further details, refer to these NSE Circulars:

• Adjustment of F&O Contracts in Reliance
• Adjustment of F&O Contracts and Physical Settlement in Reliance

Important for Exchange Margin Funding (EMF) customers

• EMF Haircut margins in RIL shares have been raised to 30% as it is expected that the price of RIL shares may drop and it is advisable to keep buffer margins in order to safeguard your existing EMF positions.
• You will be eligible to receive JFSL shares if you hold your EMF position in RIL as on the record date.

Treatment of DP-to-Pledge
Haircut margins in RIL shares have been raised to 30%.

From Sharekhan’s Research Desk
Do refer to our Research Note: Contours of RIL Demerger of Financial Services Business

Important Note
JFSL will display in online DPSR Report only on the listing date. However, you can check the allotted shares once credited by following this path: Log in to www.sharekhan.com > Reports > Transaction Reports > DP

Feel free to speak with your Branch/Relationship Manager in case of queries.

Warm Regards
Team Sharekhan