The National Stock Exchange (NSE) will organise a special pre-open session for Reliance Industries (RIL) stock on July 20, in view of the demerger of the company’s financial services business Reliance Strategic Investments Ltd.

Under the demerger, 1 share of the demerged entity will be given to the shareholders for every share they hold in RIL. July 20 has been fixed as the record date to determine shareholders eligible for the allotment of shares of the demerged entity.

The demerged entity will be renamed from Reliance Strategic Investments Ltd to Jio Financial Services Ltd (JFSL) and will eventually get listed on the stock exchanges. 

As per an earlier release dated April 26, 2023, NSE revised the Nifty equity indices methodology for handling corporate actions involving demergers. Accordingly, JFSL will be included in the Nifty 50 and 18 other indices, including Nifty 100, Nifty 200, Nifty 500, Nifty Energy, and Nifty Oil & Gas, for a brief period until it gets officially listed on the stock exchanges, NSE said in a press release. 

The Special Pre-Open session (SPOS) will be conducted on the exdemerger date (T) to determine a constant price for the spun-off entity. The constant price is the difference between the demerged company’s closing price on T-1 day and the price derived during the special pre-open session.

The spun-off entity, i.e. JFS, will be removed from all the indices on the close of trading on the third day of its listing at the market-determined price. So for at least three days from July 20, NSE Nifty 50 index will have 51 stocks. 

Similarly, Jio Financial will also be added to 18 of the S&P BSE indices on the Bombay Stock Exchange (BSE), including the Sensex, for at least three days.