Everything you need to know about demerger of Reliance Industries Limited

Reliance Industries Limited (RELIANCE) in October 2022 announced the demerger of its financial services business (Reliance Strategic Investments Limited) into a separate entity named Jio Financial Services. Shareholders of RELIANCE will get one share of Jio Financial Services for every one share they hold in RELIANCE.

The record date to determine the shareholders of RELIANCE who will be eligible for receiving the shares of Jio Financial Services has been set as July 20, 2023. You can check the announcement here.

You will be eligible for the scheme of demerger if you have bought the shares of RIL on or before July 19, 2023.

When will I receive shares of Jio Financial Services?

Generally, the credit of shares can take between 30 - 45 days from the record date. This can happen sooner too in the case of Reliance Industries as it is part of Nifty 50. You’ll receive an email from CDSL once the shares are credited to the demat account.

When will the allotted shares start trading on the exchanges?

The shares of Jio Financial Services Limited will start trading on the exchanges from August 21, 2023 under the symbol JIOFIN.

What will be the average price of Reliance shares I hold and the shares I receive of Jio Financial Services?

The average price is updated according to the Cost of Acquisition released by the company. This is usually released after the record date. We’ll update the post once we have an update on this.

Update: As per the announcement by the company, Based on the closing price of 19th July, 2023, Cost of acquisition for both the companies will be as follows:

  • Reliance Industries Ltd - 95.32% of 2841.85 = 2708.85

  • Reliance Strategic Investments Ltd (Jio Financial Services) - 4.68% of 2841.85 = 133

For example: If you have bought the shares of Reliance Industries before the ex-date (July 20, 2023) for Rs. 2500, the new average price of Reliance Industries will be 95.32% of 2500 = 2383.

The average price for Jio Financial Services will be 4.68% of 2500 = 117.

What happens to the F&O contracts of Reliance?

All existing futures and options contracts of RELIANCE expiring on July 27, 2023, August 31, 2023, and September 28, 2023, will expire on July 19, 2023, and will be physically settled just like it happens on the day of monthly expiry. You can learn more about physical settlement here .

All positions in the existing F&O contracts on the underlying RELIANCE will cease to exist pursuant to the final settlement on July 19, 2022. New futures and options contracts will be introduced on RELIANCE from July 20, 2023, with July 27, 2023, August 31, 2023, and September 28, 2023 expiry dates. You can check the announcement from the exchange here.

A Pre-open Call Auction Session will be conducted for RELIANCE in the Capital Market segment on July 20, 2023, from 9 AM to 10 AM to determine the opening price of RELIANCE based on which a minimum of five in-the-money strikes, one at-the-money strike, and five out-of-the-money strikes will be made available. The F&O trading for RELIANCE contracts will start at 10 AM.



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What will happen to my pledge shares?


if I hold FNO position in reliance will I receive notification about change in FNO expiry date of reliance from Zerodha ?

my reliance shares will get automatically unpledge?

I did not got any mail/notification regarding that

What will happen to pledge margin?


This brings back the memory of ADANIENT in 2015 and it’s corporate restructuring, value unlocking, etc.

There was no price discovery and it did trade initially at 500 levels. Thereafter, the stock tanked from 500 levels to 100 levels within minutes. And it was in FnO. Sorry, but I have to ask -

  1. Are there going to be upper limit and lower limit circuits? If so, what will be the duration.
  2. What percentage are they going to be of - for the newly listed RELIANCE on 20th July - For FUTURE and CASH?
  3. Also, what will be the limits determined in OPTIONS and how are they calculated?
  4. Also, will the symbol change from market_data point of view - Any BE,6,etc will be added or will it remain exactly RELIANCE?

We’ve already sent an email to the registered email ID and also a Kite notification for those holding Reliance F&O contracts.

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The shares of Reliance will not be unpledged. However, the pledge value will decrease due to the demerger on July 20, 2023 (ex-date/record date).

How much it will decrease?

I have reliance stocks pledged… how the demerger will impact it ?


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Answered here :point_down:

The company hasn’t released the cost of acquisition to determine it correctly. However, on 20 July 2023, the collateral margin will be reduced based on that day’s closing price.

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You can read about the how the demerger impacts Reliance and index reconstitution here

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Today 19 July 2023 is last date to buy RIL with , to be listed JFSL. …RIL WILL re-list on 20 June being in truncated form through a price discovery process similar to ipo listing.

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What if i sell on 20-07-2023, on record date,
will the shares debit from my demat a/c on the same day ?
am i eligible ?

Hi @Muniz.Reza, you will be eligible for corporate action benefits even if you sell shares on the ex-date. Explained here: Are shareholders eligible for corporate action benefits if the shares are sold on the ex-date?

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Any case of d-merger on EX date the already listed co get re-listed ( on 20 July 2023 Reliance ) through a price discovery process being in truncated form( without JFSL ) …this process is similar to ipo listing .
JFSL will list after few weeks depends on sebi relaxation .

Today I’m not able to buy Reliance share. Also there is discrepancy in buying and selling price.
Who to buy Reliance after Demerger?
And what are the new names of the scrips after the demerger?

Regular trading will resume for Reliance from 10 AM onwards due to the pre-open session held from 9 AM to 10 AM to discover the equilibrium price.

Jio Financial Services isn’t yet listed on the exchanges, it will list after allotment is done to the eligible shareholders and can take 30-45 days. You can learn more about demerger here: Everything you need to know about demerger of Reliance Industries Limited

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It is said that JFSL will be listed only for 3 days and then delist.
What does that mean?
What will be the impact on our JFSL shares ( received after demerger or bought on/after listing)?

JFLS will be listed as and when regulatory formalities are concluded mainly sebi relaxation …it will list and trade for ever , like any other normal share .