Demerger of Jio Financial Services from Reliance

Reliance Industries Limited, headed by Mukesh Ambani, has scheduled July 20 as the record date for determining the shareholders eligible to receive shares of Reliance Strategic Investments Ltd (RSIL), which will be renamed Jio Financial Services (JFSL). Each Reliance shareholder will be granted one share of the new company for every share held in the parent company.

This spinoff will establish JFSL as the fifth-largest financial entity in terms of capital. The new entity will complement Reliance’s existing consumer businesses, including India’s largest wireless operator with approximately 428 million users and a top retail chain boasting over 17,000 stores.

Regarding derivatives markets, all existing F&O contracts expiring on July 27, 2023, August 31, 2023, and September 28, 2023, will have a pre-expiry on July 19, 2023, resulting in physical settlement for any open positions.

– Shrimohan J.
Product Operations @ Dhan


Reliance - JFSL Demerger FAQs

1. What is the record date of the demerger?
The record date for the demerger is Thursday, 20th July, 2023.

2. How will the demerger affect my holdings in Reliance?
Your present holding in Reliance will remain intact. As per the allotment ratio of 1:1, you will get 1 share of Reliance Strategic Investment Limited (RSIL). RSIL will be renamed as Jio Financial Services Limited (JFSL).

3. If I want to participate in the demerger, when should I buy Reliance?
The record date for the demerger is 20th July 2023. So in case you wish to participate in the demerger, you can buy Reliance Industries on Wednesday 19th July 2023. On the contrary, if you do not wish to participate in the demerger, you can sell your holdings on Wednesday 19th July 2023,

4. What will happen to my MTF Position in Reliance?
Your MTF Holding will remain intact. However, the margin requirement may increase on your MTF position due to price adjustment of Reliance post demerger. You will be required to maintain sufficient margins.

5. What will happen to newly allotted JFSL shares against existing Reliance bought under MTF ?
Currently, JFSL shares are not listed, not traded and not approved under MTF. Upon receipt of JFSL shares in your demat account, those will continue to remain pledged under MTF and will be unpledged subsequently. .

6. What will happen to my Derivatives position?
The existing F&O contracts of July 2023, August 2023, and September 2023 will pre-expire on July 19, 2023, and shall be physically settled. New F&O contracts will be re-introduced from July 20 onwards.

7. What will happen to my Derivatives position if Reliance is given as collateral?
Again nothing to worry about. If Reliance is given as a collateral against any derivatives position, you may receive a margin call due to lowering of the pledge value due to price adjustment of Reliance post demerger, and subsequently you have to provide the required margin to continue holding your derivatives position.

8. When will the new shares of JFSL be credited to my Demat and how will I be aware of it?
In case of mergers & demergers, usually it takes around 30 to 45 days for the credit of shares. However, in this case, this may happen sooner. You’ll receive an email from CDSL once the shares are credited to the demat account.

9. In case my Reliance Shares were pledged before the demerger, what will be the impact post demerger ?
If your Reliance shares were already pledged for margin or MTF, the newly allotted shares of JFSL will be auto pledged under margin/MTF and will be communicated by CDSL. However, as the credited shares will not be listed, the same shall be unpledged subsequently from our end and no further action would be required from your side.

10. What will be the price of Reliance post demerger?
NSE will be conducting a special pre-open session for Reliance on July 20 (circular) for price discovery. Reliance is a part of NIFTY50 and other Indices too. The separation of the financial services business will impact the price of Reliance as well. Further, the demerged entity will also be a part of 19 Indices by NSE (Refer here.)

11. When will the allotted shares start trading on the exchanges?
JFSL is currently not listed on exchanges for trading. After the credit of shares, the company (JFSL in this case) has to take approval from the exchanges to list their shares. Post the approvals are received the shares will start trading on the exchanges. The timelines for this are currently not available.

12. What will be the average price for allotted shares of JFSL?
The company publishes a document on how to compute the Cost of Acquisition generally after the record date. We’ll update the post once we have an update on this. However, mathematically the average price of allotted JFSL will be computed as % of stake it had in Reliance Industries.

13. I can see some news articles and publications showing the tentative price of JFSL. How do they compute this?
As per news sources, the percentage stake of JFSL is around 6.1%. Hence, the cost of acquisition of JFSL will be 6.1% of the total cost price of Reliance. For example, if you had bought reliance at Rs. 2800, the cost price of JFSL would be 6.1% of 2800 = Rs. 170.80 and hence, the new price of Reliance would be Rs. 2,800 - 170.80 = Rs. 2,629.20. This information has been given for illustration purposes only. The same should not be construed as recommendation or indication of the price of JFSL.



Reliance has announced the Cost of Acquisition for Reliance and JFSL.

So if you had purchased 100 shares of Reliance @ 2506.50, then your new COA would be 95.32% of 2506.50 = 2,389.1958 and corresponding COA of JFSL would be 4.68% of 2506.50 = 117.3042

Link to Circular:



Jio Financial Services Limited (JFSL) shares have been credited to your Demat Account. You should have received an e-mail from CDSL in your registered e-mail ID. However you will not be able to see them in your portfolio as they are unlisted on the exchanges. Once they will be listed, they will be visible in your holdings.

Note that incase your shares of Reliance were pledged as on the record date, the newly allotted shares of JFSL will be marked with the same status.

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Update: 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 in the list of T Group of Securities. It is important to note that the scrip will be in Trade-for-Trade segment for 10 trading days

BSE Code: 543940
ISIN: INE758E01017

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Asia Index Private Limited (“AIPL”) has recently made an announcement through Notice No: 20230818-21, stating that Jio Financial Services Ltd (“JFSL”, Ticker: 543940) will be excluded from all the S&P BSE Indices starting from Thursday, August 24, 2023. This decision comes following JFSL’s listing on Monday, August 21, 2023, due to its separation from its parent company, Reliance Industries (Ticker: 500325).

AIPL is aware of JFSL’s recent experience of hitting the lower circuit limit. Given that the stock encountered the lower circuit limit for two consecutive days, namely Monday, August 21, 2023, and Tuesday, August 22, 2023, the Index Committee has chosen to extend the removal of JFSL from the S&P BSE Indices by an additional 3 days. Therefore, the effective removal date for JFSL from these indices will now be Tuesday, August 29, 2023. If JFSL continues to reach the lower circuit limit for the next two days, the removal date will be delayed by another 3 days.

Furthermore, if JFSL does not hit the lower circuit limit in the next two days but does so on the third day, the removal of JFSL from the S&P BSE Indices will be postponed by an additional 3 days. Any changes to this plan will be promptly communicated, and any adjustments to this approach will be shared through the usual communication channels.


JFSL Removal from the Indices has been further delayed by 3 days since the stock has hit lower circuit limit for 2 consecutive days i.e., Thursday, August 24, 2023, and Friday, August 25, 2023.



NSE Indices Limited, through a press release on July 17, 2023, had previously announced the inclusion of Jio Financial Services Limited (NSE: JIOFIN). This inclusion was a result of the demerger of the financial services business from Reliance Industries Limited (NSE: RELIANCE) in various indices, which was set to take effect from July 20, 2023 (concluding on July 19, 2023). Following the demerger, JIOFIN was officially listed on August 21, 2023, on the National Stock Exchange Ltd. (NSE).

As per the prescribed index methodology, it has been observed that JIOFIN did not meet the price band criteria on two consecutive trading days, specifically on September 4, 2023, and September 5, 2023, at NSE. Consequently, the Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd. has decided to remove JIOFIN from various indices listed below. This exclusion will come into effect from September 7, 2023, following the close of trading on September 6, 2023. It should be noted that if JIOFIN meets the price band requirements on September 6, 2023, the exclusion will not be postponed any further.