ALL YOU NEED TO KNOW ABOUT THE DEMERGER OF RELIANCE INDUSTRIES LTD.

Reliance Industries Ltd. (RIL) announced the demerger of its financial services arm Reliance Strategic Investments, which would be renamed later on as Jio Financial Services Ltd. (JFSL). RIL has fixed July 20, 2023 as the record date for the demerger of Reliance Strategic Investments. Under the merger deal, all RIL shareholders, as of the record date of July 20, 2023, will get one share of Jio Financial Services Ltd. (JFSL) for every RIL share they own.

Important Dates

Record Date – 20^th July 2023 (Customers should have RIL shares in their demat account as on this date)

Last Day to buy RIL shares to be eligible for JFSL shares – 19^th July 2023

Impact of the demerger on various products offered by ICICIdirect.com

Delivery (Cash)

All shareholders of RIL as on the record date of 20^th July 2023, will be eligible to receive 1 share of JFSL for every 1 share held of RIL. There will be special price discovery session for RIL shares from 9:00AM to 10:00AM on July 20, 2023 and the price at which highest orders will be matched becomes the stock price for Day open.

This means that the normal trading in RIL will not be available from 9:15AM to 10:00AM on July 20 and normal trading will resume after 10:00 AM

Margin Trading (MTF)

Since normal trading will not be available from 9:15AM to 10:00AM on July 20, creating new positions and squaring off of existing positions will not be allowed during that time. This will be allowed after 10:00AM

There will be no change in the margins in RIL shares. However, since it is expected that the price of RIL shares may drop, it is advised to keep buffer margins in order to safeguard your existing MTF position.

You will be eligible to receive JFSL shares if you hold your MTF position in RIL as on the record date 

Shares as Margin (SAM)

The haircut on RIL shares will be increased from 13% to 20%. This shall be implemented for Shares as Margin as below:

July 17 – 17%,

July 18 – 20%,

 You will be eligible to receive JFSL shares if your RIL shares are pledged for SAM as on the record date

Futures & Options

All Futures and Options contracts with expiry dates of July 27, 2023, August 31, 2023 and September 28, 2023, will expire on July 19, 2023.

F&O contracts for RIL shall be introduced again (with expiry July 27, 2023, August 31, 2023 and September 28, 2023) from July 20, 2023