18-Jul-2023
2 mins read
Key Takeaways
- Existing derivative contracts for RIL set to expire on July 19, ahead of schedule.
- Demerger to result in share allotment in the new entity – Reliance Strategic Investments Ltd.
- New derivatives contracts to be introduced from July 20.
- The demerged entity to be renamed and listed as Jio Financial Services (JFSL).
- Ambani expected to provide detailed roadmap for JFSL during the upcoming annual general meeting.
Reliance Industries (RIL) is making significant moves in the business world, with a significant demerger set to affect existing derivative contracts. According to a circular from the National Stock Exchange (NSE), these existing derivative contracts for July, August, and September will expire early on July 19. This strategic move precedes the demerger of RIL’s financial services business.
Impact on RIL Shareholders
The impact of this decision extends to shareholders of RIL, who, in accordance with the demerger, will receive a share in the demerged entity for every share they hold in the conglomerate. This entity, Reliance Strategic Investments Ltd, has set July 20 as the record date for this share allotment.
| Key Dates | Details |
| 19-Jul | Expiry of existing contracts |
| 20-Jul | Record date for the share allotment in the new entity |
Introduction of New Derivatives Contracts
Following the expiry of the current derivative contracts, new ones will be introduced from July 20, the ex-date for the underlying. The NSE has confirmed that option strikes will be available for trading on this date. The specifics will be available in a separate circular released after market hours on July 19.
The selection of in-the-money, at-the-money, and out-of-the-money strikes will be available depending on the market prices determined. The NSE mentioned that it would include a minimum of “5 in-the-money strikes, 1 at-the-money strike, and 5 out-of-the-money strikes”.
Future of the Demerged Entity
The future of the demerged entity, Reliance Strategic Investments, is already set in motion. It will be renamed Jio Financial Services (JFSL) and listed on the exchanges. This development is highly anticipated, with the possible listing of Jio Financial being hinted at for September.
During the upcoming annual general meeting, Ambani is expected to provide a detailed roadmap for the financial services business and give an approximate date for the JFSL listing.