Jio Financial Becomes Core Investment Company: Approved by RBI, Shares Up Over 50% This Year
The shares of Jio Financial Services Limited are in focus today, Friday. The company has informed the exchanges that it has received approval from the Reserve Bank of India to convert from a “Non-Banking Financial Company” (NBFC) to a “Core Investment Company.”
In November last year, Jio Financial Services applied to the Reserve Bank of India to convert the company from a non-banking financial company to a core investment company. It informed both exchanges of this on November 21, 2023.
After separating the financial services business from Reliance Industries, Jio Financial shares were listed on August 21, 2023. The shares were listed at ₹265. Currently, its shares are trading around ₹350. This year, the stock has risen by almost 50%.
CIC is a Company with Assets Over ₹100 Crore
A Core Investment Company (CIC) is a specific NBFC with assets exceeding ₹100 crore. Based on the RBI’s circular dated December 20, 2016, the primary function of a CIC is to acquire shares and securities subject to certain conditions.
A CIC is required to hold at least 90% of its net assets in the form of equity shares, preference shares, bonds, debentures, or loans in group companies. All CICs with assets exceeding ₹100 crore are regulated by the Reserve Bank of India.
Reliance’s Financial Services Business Includes 6 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
