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JFSL and BlackRock have received in-principle approval from SEBI to establish a mutual fund business.

Banking & Finance | Dated: 10 Oct 2024

On October 3, 2024, Jio Financial Services Limited (JFSL), a Non-Banking Financial Company (NBFC) supported by Reliance Industries Limited (RIL), received in-principal approval from the Securities and Exchange Board of India (SEBI) to set up a Mutual Fund (MF) business. This venture will be in collaboration with BlackRock Financial Management Inc., based in New York, which is the world’s largest asset manager. The final registration approval will be granted by SEBI once JFSL and BlackRock meet the requirements specified by SEBI in its official notification.

🎯 Key Highlights:

  • - JFSL will invest Rs 3 crore for the initial subscription of 30 lakh equity shares with a face value of Rs 10 each.
  • - Additionally, both companies announced an investment of USD 150 million each for the mutual fund business in India.

💡 Other Important Facts:

  • (i) In July 2023, Jio Financial Services announced a 50:50 joint venture with BlackRock to launch asset management services in India, with each partner committing an initial investment of USD 150 million.
  • (ii) On April 15, 2024, the partnership was expanded to include wealth management and brokerage services.
  • (iii) The mutual fund industry in India is one of the fastest-growing sectors, with Assets Under Management (AUM) doubling from Rs 25.48 lakh crore in 2019 to Rs 66.67 lakh crore in 2024.

📚 Test Your Knowledge:

With which financial management firm did Jio Financial Services(JFSL) receive in-principle approval from SEBI for their mutual fund venture?

Correct Answer: BlackRock

🚀 Quick Recap:

About Jio Financial Services Limited (JFSL)

  • CEO: Hitesh Kumar Sethia
  • Headquarter : Mumbai