Reliance ADAG, Karvy tie-up for odd lot share

New Delhi, Aug 8: The Reliance Anil Dhirubhai Ambani Group today entered into an arrangement with Karvy Consultants, to introduce an odd lot scheme, to provide liquidity for the shares held in physical form of Reliance Capital (RCL), Reliance Energy (REL), Reliance Communications (RCom) and Reliance Natural Resources (RNRL).

As per the contract, Karvy will purchase shares of the companies, held in physical form in small lots (49 or less shares) on spot delivery basis. The purchases will be made at the determined market price being not less than the previous trading day's closing price quoted on the National Stock Exchange of India (NSE).

''Karvy will be under an obligation to dematerialise the shares and thereafter to sell the same in the market within five trading days of dematerialisation. It will be reimbursed the net deficit, on account of costs, charges, expenses and the difference between purchase and sale price,'' a Reliance statement said.

The consultant will be provided with requisite temporary funding for the period between the purchase and sale of the shares.

Karvy will make the payment by cheque against the delivery of share certificates, along with duly completed and executed transfer forms and proof of identity, the statement added.

UNI