All you need to know about RIL-Jio Financial demerger

economictimes.indiatimes.com:

Reliance has announced the demerger of its financial services business into Reliance Strategic Investments as part of its group restructuring.

The spun-off entity has been renamed Jio Financial Services, which will be listed soon. The demerger of the financial services business involves a spin-off of Reliance Industries' 6.1% treasury shares.What is in it for Reliance shareholders?Under the demerger arrangement, shareholders of Reliance will get one share of the demerged entity for every share held by them in the conglomerate.

Reliance has fixed July 20 as the record date to determine eligible shareholders for the allotment of shares of the demerged entity. The record date is the day when a company finalises its records to identify the eligible shareholders for a corporate action like demerger.

So, if an investor holds Reliance shares on July 20, she will be eligible to receive Jio Financial shares. The shareholding pattern in Jio will be the same as Reliance Industries.Why is NSE holding a special session for RIL on July 20?It will be a special pre-open session for the purpose of price discovery in Reliance Industries shares (excluding the financial services business following the demerger).