Salient features to know
1. Reliance Industries Limited (RIL) is proposing demerger in coming months with its Financial Services unit Reliance Strategic Investments Limited (RSIL) which is Currently Non deposit taking systematically important NBFC and wholly owned subsidiary of RIL.
2. According to proposed scheme, demerger will be through a Share swap arrangement and RIL shareholders would get 1 share of Reliance Strategic Investments Limited.
3. Pursuant to this demerger, Reliance Strategic Investments Limited (RSIL) would get ownership of Reliance Industrial Investments and Holdings Limited (RIIHL) which is currently financial services undertaking of RIL.
4. RSIL would get listed on stock exchange in September 2023 and its name would be changed to Jio Financial Services Limited after the proposed demerger.
5. The board of directors on 21st October, 2022 had already approved the above scheme and the company would hold meeting of creditors and shareholders meeting on 2nd May 2023 for approving the said scheme.
6. Further, the proposed scheme would be subject to various approvals and permissions from NCLT, SEBI, RBI, stock exchanges, Competition Commission of India.
7. KV Kamath and Manish Singh, former ICICI Bank Non- Executive Chairman and ICICI bank officer would be appointed in proposed new entity Jio Financial services Limited as Chairman and team member.
Objectives behind Demerger
Business analysts have made below predictions of the proposed demerger: