Reliance Rights Issue & Dematerialized Rights Entitlement Trading

[mohitmehra]

Please check this:

Adjustment of F&O contracts in Reliance

Let’s say you buy 500 shares of Reliance in the cash market at Rs. 1557 on May 12th (when the share is trading cum rights). The benefit you receive per 15 shares is Rs. 300 (i.e. 1557-1257 since you’re entitled to buy one share of Reliance at Rs. 1257 even though the price is Rs. 1557. On May 13th, if nothing else changes, the theoretical price of the shares should be lower by Rs. 20 (i.e. (1557-1257)/15). Accordingly, a. Cost of your holdings: 500x1557 = 778500 b. Theoretical price on May 1…