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 .
@Bhuvan
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
1 Like
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 .
Once listed, it will not delist. Currently Jio Financial Services is part of all the indices that Reliance is part of, for example Nifty 50 at constant price (as it is not traded). Once it lists on he exchanges, it will be removed from those indices after 3 days. Please check out this post for more information:
What is the expected date when JFSL share will be credited in RIL shareholders demat acc?
Exact date is not available. It generally takes 30-45 days from the record date (July 20, 2023).
I bought RIL on 19th july and taken delivery.
Will i get Jio financial shares?
Yes, you will be eligible to get shares of Jio Financial Services.
1 Like
@ShubhS9, thanks for an excellent “article”.
Would you be kind enhance it to add a section on how the 31-Jan-2018 FMV value used for long term capital gains calcuation for those selling RELIANCE shares which were bought RELIANCE before that date will be changed? Sites like Fair Market Value of stocks on 31 Jan 2018 for LTCG still show the “old” (pre-demerger) value of ₹964.90. I assume that the same factor of 95.32% will be applied to the 31-Jan-2018 FMV value to produce ₹919.74 (95.32% of ₹964.90)? It would be most reassuring to me and others in a similar “grandfathering” situation to see it in your first post.
Thank you.
Russell
@ShubhS9, I don’t believe this is a @Quicko issue just as the updating of the average price that you’ve described is not a @Quicko issue. Or, to put it another way the tax laws have not changed. LTCG is still calculated the same way as before. Only the values used in the calculation (e.g., the average price or 2018 FMV) have changed based on the Cost of Acquisition. Please keep in mind that when one sells shares one can get a Tax P & L report in Console. That report has to use the 31-Jan-2018 FMV in the grandfathered case. Perhaps you can ask that department what they are doing for grandfathered RELIANCE sales after the demerger, please?
Read news yesterday that JFSL shares has been credited to demat accounts.
Had everyone received those shares, where is it visible if yes?
The shares of Jio Financial Services are yet to be listed on the exchanges, until the shares are listed, these won’t show in your holdings on Kite. However, you can check in Console holdings under ISIN: INE758E01017
1 Like
From accounting perspective, what would be the price of acquisition?
@Chirag1 4.68% of your investment in RIL will be assigned to Jio Financial Services, with the same date of acquisition as RIL.
1 Like
Will it be automatically done or should we do it? Because right now on console it shows discrepancy and says we should manually add buy data.
We have provisions to handle all corporate actions for buy price and PnL calculations. Since it is not listed, we don’t have all the info required to update it. We’ll show the buy price for all our clients once it is listed on the stock exchanges.
2 Likes
