Jio Financial Services, a subsidiary of Reliance Group, which has proved its mettle in the finance sector, is now all set to enter the mutual fund industry. For this, SEBI has approved Jio Financial Services and BlackRock to enter the mutual fund industry. The move will bring new competition in the mutual fund market, which includes the collaboration of Jio Financial Services, a Mukesh Ambani-led company, and BlackRock, the world's largest asset management company. This new partnership is expected to bring about a change in the Indian mutual fund market, whose total assets are currently around Rs 66 lakh crore.
Jio Financial Services has said through exchange filing that SEBI has approved both the companies. Final approval will be given after completion of all necessary paperwork. In July 2023, both the companies had announced this joint venture, in which together they will invest about $300 million in the asset management business. Out of this, both the companies will jointly invest $150 million each. The license was applied to SEBI in October 2023, after which it has now received approval.
BlackRock's International Head Rachel Lord expressed happiness over this approval and said that both the companies together will try their best to provide cheap and sustainable investment options to Indian investors. His goal is to transform India from a savings-oriented country to an investment-oriented country. Under this, they will launch new and innovative products, which will help investors achieve their financial goals faster. This joint venture will strengthen its presence not only in mutual funds but also in wealth management and stock broking business.
Jio Financial Services was listed in the stock market in August 2023. Earlier it was a subsidiary of Reliance Industries, but now it is working as a financial service provider. The company holds an NBFC license, which allows it to provide a wide range of financial services. Apart from this, its another subsidiary is Jio Payments Bank. Recently, RBI has approved to convert Jio Financial Services into Core Investment Company (CIC).
