Fair point @Russell
None that we’re aware of, which is precisely why we’re checking with our auditors.
The child company does get the same date of acquisition as the parent company in case of demerger. But we’re not sure creating FMV based on the parent company’s FMV is the right approach. We’ll update once we have clarity on this.
Thanks for the response on Independence Day, @TheGouda. I appreciate being able to convey my thoughts directly to someone “in the loop”.
I’m a little surprised that there has been no CBDT guidance on this. I assumed stock splits affected the FMV and was curious how the demerger woud affect the FMV. It’s been over 5 years since 31 Jan 2018 and there have been numerous stock splits since then. If nothing has been done for the FMV in those cases it may be best to let sleeping dogs lie.
News says JFSL to list on 21-Aug, ie. next week
Yes, BSE has released a circular.
Trading Members of the Exchange are hereby informed that effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the Exchange.
If you have received the shares of Jio Financial Services shares in Zerodha demat account, the buy price will be adjusted as per the cost of acquisition released by the company.
What all companies are under the Jio Financial services?
Is Jio mobile, internet a part of it?
A company with a net income of 414 crore last quarter is valued at 166000 crore??
nice.
I am sure Adani companies are also in the same levels for somewhat similar reasons. but FIIs are throwing money at it like there is no tomorrow.
Jio Financial Services is listing on the exchanges today under the trading symbol “JIOFIN”.
The shares of JIOFIN will be traded under the trade-to-trade (T2T) category. This is because stocks listing after demerger are compulsorily traded under the T2T for 10 days. You can check the circular here.
This means if you buy shares of JIOFIN today, you can sell only once the shares are credited to your account. The settlement happens on T+1 day. Additionally, intraday and BTST (Buy Today Sell Tomorrow) trades aren’t allowed. Learn more here.
How do I know whether a stock is settled on a T2T basis?
There are a couple of ways;
NSE adds a “BE” tag in front of the trading symbol for stocks trading in the T2T.
On Kite, you will see a nudge if the stock is in T2T.
It’s been more than three days, still it is a part of NIFTY50 as I can see it in NIFTY50 index. If so then what is it’s weightage in the index?
At time of listing it was around 200-250pts i think in Nifty.
Anyway, looks like it has begun trading today. 22Cr volume absorbed all the sellers in LC.
Since JIOFIN hit a lower circuit on the first two trading days, the deadline to remove it from the index was extended by another 3 days. As explained in the post shared above.
Not exactly sure about the weightage. From whatever I read, it was around 1%.
sir i am holding jfsl shares in 100 quantity… kya hum unn shares ko kabhi sell nahi kar sakte???
jaise ke abhi apne bataya ke jfsl ko nse se remove kar rahe hai… toh kya hum hamare shares nahi sell kar sakte
No restriction on Buy or Sell. Just remove from Index
hello sir.
i had bought reliance share at thier ipo and have never touched them.
when the jio demerger happened i converted the reliance share to digital platform on zerodha and same way i recieved my jiofin share on zerodha ,.
now as these shares have been transfered from physical formate i am asked to enter the avg price of buy and i am confused to what should i wright in the avg buy price of reliance and jio,… can you please help?
reliance holding form ipo time damm,you must be rich.
Have explained the average price calculation above. That should help you.
