July, August and September F&O contracts for Reliance Industries are set to expire on 19 July.
Reliance Industries’ open futures and options contracts for the months of July, August and September will expire on 19 July as a result of the demerger of Jio Financial from billionaire Mukesh Ambani led-RIL. The demerger is set to occur on the record date of 20 July. “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 the National Stock Exchange, in a circular.
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However, derivatives contracts on Reliance Industries will be introduced again (with expiry dates of 27 July, 31 August and 28 September) from 20 July. Additionally, the list of option strikes from which specific strike prices would be made available for trading on 20 July shall be intimated to the trading members through a separate circular to be issued on 19 July after market hours.
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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. Depending upon the price movement of the security in the Capital Market segment, further strike prices may be made available during the day from within the list of strikes given in the circular to be issued on 19 July.
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About the Reliance demerger
Reliance Industries has decided to demerge its financial services unit Reliance Strategic Investments. RIL has fixed July 20 as the record date to determine the equity shareholders entitled to receive shares of Reliance Strategic Investments (RSIL). Under the scheme of the arrangement, Reliance Strategic Investments will allot one fully paid-up equity share of RSIL of face value of Rs 10 each, for every one share of Reliance Industries as of the record date. Reliance Strategic Investments will then be renamed Jio Financial Services (JFSL).
