SEBI Approval for Jio Financial-BlackRock’s Mutual Fund Business: Final Approval Pending, Both Companies Entered Partnership in July 2023
Jio Financial Services and BlackRock’s joint venture has received theoretical approval from the market regulator, the Securities and Exchange Board of India (SEBI), to enter the mutual fund sector in India. Jio announced this information in its stock exchange filing on Friday.
Both companies will work as co-sponsors for the mutual fund. Jio stated in its exchange filing that it is still awaiting final approval from SEBI for registration. SEBI will grant final approval when Jio Financial and BlackRock fulfill the conditions specified in the letter.
Increased Competition in the Mutual Fund Industry Exceeding ₹66 Lakh Crores
Jio’s entry into the mutual fund sector is likely to further increase competition in the mutual fund industry, which has assets under management (AUM) exceeding ₹66 lakh crores.
Both companies partnered for the mutual fund business in July 2023 and applied for a license with SEBI in October 2023.
Additionally, both companies announced a $150 million investment in the asset management business in India.
Jio Financial Shares Yield a 50.38% Return Over the Past Year
On Friday, Jio Financial Services‘ shares closed at ₹338.95, down 1.92%. During this period, the shares have posted a negative return of 9.18% over the last six months. However, Jio Financial’s shares have provided a positive return of 50.38% over the past year.
Reliance’s Financial Services Business Includes Six Companies
Reliance’s financial services business comprises the following six companies:
- Reliance Industrial Investments and Holdings Limited
- Reliance Payment Solutions Limited
- Jio Payments Bank Limited
- Reliance Retail Finance Limited
- Jio Information Aggregator Services Limited
- Reliance Retail Insurance Broking Limited
