NSE to conduct special pre-open session in RIL shares on July 20

economictimes.indiatimes.com:

Reliance Industries stock on July 20 on account of the demerger of the company's financial services business into Reliance Strategic Investments. The demerged entity will be renamed Jio Financial Services and will be included in Nifty 50 and all other major indices, NSE said in the release. Reliance has fixed July 20 as the record date to determine eligible shareholders for the allotment of shares of the demerged entity.

Under the demerger, shareholders of Reliance will get one share of the demerged entity Reliance Strategic Investments for every one share held by them in the conglomerate. Other than the benchmark Nifty, Jio Financial will also be included in other indices such as Nifty100, Nifty 200 and Nifty 500, among others. This is the first time a spun-off entity is being included in the indices after the NSE in April introduced new rules on the methodology of Nifty indices for handling corporate actions involving demergers.

As per the revised index methodology, the spun-off business entity will be included in the indices at a 'constant price'. This will be the difference between the demerged company's closing price on July 19, a day before the ex-demerger date, and the price derived during a special pre-open session on the ex-demerger day on July 20. The move to include a spun-off entity in the indices is aimed at reducing churn in index constituents resulting from demergers.