Jio Financial demerger effect: NSE says all existing F&O contracts of RIL for next 3 months to expire on July 19

National Stock Exchange on Wednesday said Reliance Industries Ltd's futures and options (F&O) contracts for next three months will expire on July 19 in the wake of July 20 being fixed as record date for Jio Financial demerger.

"All existing contracts with expiry dates July 27, 2023, August 31, 2023 and September 28, 2023, will expire on July 19, 2023. The methodology of settlement shall be separately intimated by respective Clearing Corporations," said NSE in a press release. 

New F&O contracts will emerge post share price discovery on July 20, said NSE.

Mukesh Ambani-led RIL has on Saturday fixed July 20 as the record date for the purpose of determining the shareholders who are entitled to receive shares of Reliance Strategic Investments Ltd (RSIL), which will be renamed as Jio Financial Services (JFSL).

"Derivatives contracts on RELIANCE shall be introduced again (with expiry July 27, 2023, August 31, 2023 and September 28, 2023) from July 20, 2023 being the ex-date of the underlying. The list of option strikes from which specific strike prices would be made available for trading on July 20, 2023 shall be intimated to the trading members through a separate circular to be issued on July 19, 2023 aftermarket hours," NSE further said. 

"Based on the price determined after opening of the Capital Market segment on July 20, 2023, a minimum of five in-the-money strikes, one at-the-money strike and five out-of-the-money strikes will be made available to the market. The same will be intimated to the trading members through a message broadcast on the trading terminals," added NSE.

Every Reliance shareholder will get one share of the new firm for every share held in the parent.

The spinoff, which will create fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance, will complement Reliance's consumer businesses, which include India's largest wireless operator with about 428 million users, top retail chain with over 17,000 stores.

The board of directors of the new company at a meeting held on July 7 approved the appointment of new directors. Isha Mukesh Ambani, the elder daughter of the billionaire, has been appointed as non-executive director. Alongside, Reliance executive Anshuman Thakur too has been appointed as non-executive director.

It said former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, too have been appointed independent directors.

Banker Hitesh Kumar Sethia has been appointed managing director and chief executive officer of RSIL for a period of three years.