NSE to conduct special pre-open session in RIL shares on July 20

The National Stock Exchange of India will conduct a special pre-open session for Reliance Industries stock on July 20, on account of the demerger of the financial services business of the company. 

July 20 has been fixed by the company, as the record date to determine eligible shareholders for the allotment of shares of the demerged entity. Under the demerger, shareholders of RIL will get 1 share of the demerged entity Reliance Strategic Investments for every 1 share held by them in the RIL. 

As per the circular dated July 12, 2023, the NSE has announced a special pre-open session for Reliance Industries in the Capital Market segment. This session is scheduled to take place on July 20, in relation to the demerger of its financial services business into Reliance Strategic Investments Ltd, which will be subsequently renamed Jio Financial Services Ltd. 

In light of Reliance Industries’ participation in the special pre-open session, the Bombay Stock Exchange (BSE) has made an announcement. Jio Financial, a subsidiary of Reliance Industries, will be included in 18 S&P BSE indices, including the prestigious S&P BSE Sensex, starting from July 20 and for a duration of three days. However, after the three-day period, Jio Financial will be removed from all the S&P BSE indices at its last traded price. 

In addition to the Nifty 50 index, Jio Financial Services will be included in 18 other indices of the National Stock Exchange, including Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty Commodities, Nifty Total Market, and Nifty Oil & Gas. This temporary inclusion is a result of the exchange’s revised regulations on index methodology, which now consider mergers and demergers of index constituents. The NSE has recently released an updated list of indices where Jio Financial Services will be included starting from July 20. 

As per the press release, the spun-off entity Jio Financial Services will be included in the following indices effective from July 20, 2023 (based on the closing prices of July 19, 2023). 

On April 26, 2023, NSE issued a press release announcing the revision in the methodology of Nifty equity indices. This revision was made specifically to address the handling of corporate actions related to demergers. 

At the time of writing this article, the shares of Reliance Industries are trading at approximately Rs 2808 on the NSE reflecting a 0.42% increase from the previous day’s closing price of Rs 2796.70. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.