Special trading session on RIL

The Bombay Stock Exchange and the National Stock Exchange will hold a special one-hour trading session before regular market opening on January 18 to help assess post-demerger prices of Reliance Industries (RIL) shares, the exchanges said in a release today.

Since RIL with a market capitalisation of more than Rs 1,20,000 crore has been given significant weighting in both the Nifty (9.04 per cent) and the Sensex (11.14 per cent), and since exchanges are not equipped to assess the value of the de-merged shares independently, a special trading session has been organised just for RIL shares.

This is essentially to determine the opening level of indices which will continue to include RIL. On account of the de-merger, RIL's market capitalisation will undergo a change, resulting in the indices requiring adjustments in base market capitalisation.

Since the four new separate Reliance entities are not currently listed and traded, setting a post-demerger price for RIL shares is not possible by the exchanges.

There will be no circuit filter during the special trading session. The volume weighted average price of RIL during this special session shall be used for making adjustments to the base market capitalisation of the respective indices.

No index will be calculated during the special session and the normal market shall commence at 9.55 am. Trading done for RIL shares during the session will be settled along with normal market trading of January 18.

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Brain storming

January 18 meeting to decide post-merger share price of RIL

RIL's market capitalisation is likely to undergo a change, resulting in the indices requiring adjustments in base market capitalisation

The volume weighted average price of RIL during this special session will be used for making adjustments to the base market capitalisation of the respective indices