Stock Market

Demerger of Reliance : Understanding the Special Pre-Open Session for Reliance Industries Ltd

Demerger of Reliance : In a significant development for Reliance Industries Ltd (RIL), the demerger of Reliance Strategic Investments, which will be renamed as Jio Financial Services (JFS), brings forth a special pre-open session for the company. This session is scheduled to take place at 9 am on Thursday, lasting for 60 minutes.

The purpose of this session is to facilitate the entry, modification, or cancellation of orders for Reliance Industries during the first 45 minutes. Subsequently, the order matching period will follow, lasting for the next 10 minutes.

Demerger of Reliance : Understanding the Special Pre-Open Session

1. Order Collection Period and Equilibrium Price

During the special pre-open session, investors will have the opportunity to place their buy or sell limit orders for Reliance Industries. These orders will be collected during the first 45 minutes. Once this period concludes, the order matching process will begin, and the orders will be matched at a single equilibrium price, which will be the opening price for the regular trading session.

2. Matching Buy and Sell Orders

The eligible buy limit orders will be matched with the eligible sell limit orders during the order matching period. This process ensures that the opening price is determined based on the supply and demand dynamics of the market at that particular moment.

3. Restriction on Order Modification and Trade Actions

During the order matching period, order modification, order cancellation, trade modification, and trade cancellation will not be allowed. This restriction is in place to ensure a fair and transparent matching process, without any undue influence on the equilibrium price.

4. Buffer Period for Transition

After the order matching period, there will be a buffer period of five minutes to transition from the special pre-open session to the regular trading session. This buffer period helps smooth the transition and allows for any final adjustments before regular trading commences.

5. Finding Value for RIL (ex-financials)

The special pre-open session serves the purpose of finding the value for Reliance Industries Ltd, excluding its financials. This value is crucial, as it will impact the addition of Jio Financial Services (JFS) to Nifty.

6. JFS Addition to Nifty

On the day of the special pre-open session, JFS will be added to Nifty, joining 51 other stocks on the index. The constant price for JFS will be derived from the difference between Reliance Industries’ closing price on the previous trading day and the price discovered during the special pre-open session. For instance, if RIL’s closing price on Wednesday was Rs 2,853 and the stock settles at Rs 2,703 during the special pre-open session, the value for JFS would be Rs 150.

7. Daily Basis Computation for Nifty Index

The derived price of Jio Financial will be considered on a daily basis for Nifty index value computation until it gets listed on the stock exchanges. This process ensures that the index accurately reflects the market sentiment and the changing value of JFS.

Demerger of Reliance : JFS Listing and its Impact

Once Jio Financial shares get listed on the exchanges, it will be included as the 51st stock in the Nifty 50 index for a temporary period. This inclusion allows time for volatility to settle in, enabling investors to adjust their portfolios accordingly.

Demerger of Reliance : Estimated Listing Price and its Management

Jio Financial Services (JFS) is expected to be listed on the stock exchanges in the next 2-3 months at an estimated price range of Rs 150-Rs 190 per share. Active and passive fund managers are expected to maintain the JFS price at around Rs 261.80 per share until it begins trading. This management ensures stability and fairness in the stock’s initial trading phase.

Demerger of Reliance : Removal from NSE and BSE Indices

Once JFS starts trading, it will be removed from all NSE and BSE indices at the last traded price, effective on the open of the JFS listing date plus three business days. For example, if JFS lists on August 21, it will be compulsorily deleted from the indices on August 24.

Conclusion

The demerger of Reliance Strategic Investments into Jio Financial Services marks a significant event for Reliance Industries Ltd. The special pre-open session plays a crucial role in determining the opening price for the regular trading session and finding the value of RIL (ex-financials). It also sets the stage for the inclusion of JFS in the Nifty 50 index, impacting its computation. As the listing date approaches, market participants eagerly await the new opportunities and challenges that JFS will bring to the Indian stock market.

For more updates follow Allinfohere

FAQs

What is the purpose of the special pre-open session for Reliance Industries Ltd (RIL)?

The special pre-open session allows investors to enter, modify, or cancel orders for RIL during the first 45 minutes. It facilitates the determination of the opening price for the regular trading session.

How are buy and sell orders matched during the special pre-open session?

Eligible buy limit orders are matched with eligible sell limit orders during the order matching period to determine the equilibrium price.

What is the significance of finding value for RIL (ex-financials) during the special pre-open session?

The value found during this session impacts the addition of Jio Financial Services (JFS) to the Nifty index.

How is the constant price for JFS derived for its addition to Nifty?

The constant price for JFS is derived from the difference between RIL’s closing price on the previous day and the price discovered during the special pre-open session.

What happens after JFS gets listed on the stock exchanges?

JFS will be included as the 51st stock in the Nifty 50 index for a temporary period to allow volatility to settle before its final position is determined.

Ankit Singh

Recent Posts

Chaitra Navratri 2024 : नवरात्रि के सातवे दिन माँ कालरात्रि को प्रसन्न करने के लिए ऐसे करें पूजा

नवरात्रि के नौ पवित्र दिनों में से प्रत्येक दिन एक अलग देवी को समर्पित होता…

7 months ago

Kamada Ekadashi 2024 :कामदा एकादशी पर पैसे की तंगी से छुटकारा पाने के लिए कामदा एकादशी के उपाय

कामदा एकादशी, हिंदू धर्म में एक महत्वपूर्ण व्रत और उत्सव है। यह भगवान विष्णु को…

7 months ago

October Amavasya 2024 :आश्विन अमावस्या 2024 कब है, तिथि और सुख-समृद्धि प्राप्त करने के उपाय

आश्विन अमावस्या, हिंदू धर्म में एक महत्वपूर्ण दिन माना जाता है. यह हिंदू पंचांग के…

7 months ago

Mata ki Chunari : देवी मां की पूजा में क्यों चढ़ाई जाती है चुनरी ? जाने चुनरी चढ़ाने से होने वाले 6 लाभ

हिंदू धर्म में देवी मां की पूजा का विशेष महत्व है। पूजा की विधि विधान…

8 months ago