RIL's Derivative Contracts To Expire On July 19, Price Discovery Session On July 20
A pre-open call auction session for RIL will be conducted for price discovery on July 20 from 9-10 a.m.
The derivative contracts of Reliance Industries Ltd. will expire on July 19 as the company demerges its financial services arm on July 20.
"All existing contracts with expiry dates of July 27, 2023, Aug. 31, 2023, and Sept. 28, 2023, will expire on July 19, 2023," the National Stock Exchange said on Wednesday.
The oil-to-clothes conglomerate has set the record date for the demerger of its financial services arm, which will be renamed and listed as Jio Financial Services Ltd.
The futures and Options contracts of the company will be introduced again with expiry dates of July 27, Aug. 31, and Sept. 28, starting July 20.
A pre-open call auction session for RIL will also be conducted for price discovery on July 20 from 9–10 a.m., according to another circular by the exchange.
"All the unmatched orders of the pre-open call auction session within the dynamic price band of the discovered price shall be moved to the normal trading session at their limit price," it said.
However, if equilibrium price is not discovered, all orders will be cancelled, and the stock will continue to trade in the call auction mechanism until equilibrium price is discovered.
Based on the price determined, 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.
Following the successful price discovery on July 20, the stock will be eligible only in the second session of the block deal window on that day's trading session.
On Wednesday, shares of Reliance Industries rose 1.11% as compared with a decline of 0.28% in the benchmark Nifty 50.