BusinessSebi gives in-principle green light to Jio Financial BlackRock’s proposed mutual fund business
Reliance’s financial services business was spun off from its parent company Reliance Industries Limited (RIL) in July 2023.
The joint venture of Jio Financial Services and BlackRock has received in-principle approval from market regulator Securities Exchange Board of India (SEBI) to enter the mutual fund industry in India. Jio gave this information in its stock filing on Friday.
The two companies will act as co-sponsors of the mutual fund. Jio said in its exchange filing that it is yet to receive final approval from SEBI for registration. SEBI will give the final approval when Jio Financial and BlackRock fulfill the conditions mentioned in the letter.
Competition will increase in MF industry worth over Rs 66 lakh crore Jio’s entry into the mutual fund sector is likely to further increase competition in the mutual fund sector with assets under management (AUM) of over Rs 66 lakh crore.
The two companies had joined hands for mutual fund business in July 2023 and applied for license from SEBI in October 2023.
The two companies had announced an investment of $150 million in asset management businesses in India.
Jio Financial shares gave a return of 50.38% in a year Shares of Jio Financial Services had closed at Rs 338.95 with a decline of 1.92 per cent on Friday. At the same time, the stock has returned a negative 9.18% over the past 6 months. While over the last one year, Jio Financial shares have generated a positive return of 50.38%.
Jio Financial Services was separated from RIL in July 2023. Reliance’s financial services business was spun off from its parent company Reliance Industries Limited (RIL) in July 2023. Post-demerger, Jio Financial’s share price was fixed at Rs 261.85 under the price discovery mechanism.
After this, on August 21, the company’s shares were listed on the Bombay Stock Exchange (BSE) at Rs 265. At the same time, the stock was listed at Rs 262 on the National Stock Exchange (NSE). After the listing, JFSL shares fell that day. The stock closed at Rs 251.75 on the BSE with a lower circuit of 5%. At the same time, on NSE also, the stock closed at Rs 248.90 with a lower circuit of 5%.
Reliance’s financial services business comprises 6 companies…
Reliance Industrial Investments & Holdings LimitedReliance Payment Solutions LimitedJio Payments Bank LimitedReliance Retail Finance LimitedJio Information Aggregator Services LimitedReliance Retail Insurance Broking LimitedInvestments