September 9, 2024
New Delhi, India
Jio Financial Services – BlackRock
Shares of Jio Financial Services Ltd (JFS) are in focus today after the company announced a joint venture with BlackRock Advisors Singapore to provide investment advisory services, subject to regulatory approvals. The new entity, named ‘Jio BlackRock Investment Advisers Private Limited,’ aims to tap into the growing investment advisory market in India.
Details of the Joint Venture:
- Initial Investment: JFS will invest ₹3 crore towards an initial subscription of 30,00,000 equity shares with a face value of ₹10 each. The Ministry of Corporate Affairs issued the certificate of incorporation for the new company on September 7.
- Transaction Structure: The transaction does not qualify as a related party transaction, and the promoter, promoter group, and associated companies of JFS are not interested in it.
- Regulatory Status: The incorporation of the joint venture required no governmental or regulatory approvals.
- Regulatory Milestones: In July, the Reserve Bank of India (RBI) approved Jio Financial Services’ application to convert from a systemically important non-deposit-taking Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC).
Also Read: Bajaj Housing Finance IPO Opens Today: Key Details
Business Structure and History:
- Subsidiaries and Joint Ventures: Jio Financial Services operates its financial services business through subsidiaries such as Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), as well as through its joint venture, Jio Payments Bank Limited (JPBL).
- Company Evolution: Initially incorporated as Reliance Strategic Investments Private Limited in 1999, the company underwent several name changes before becoming Jio Financial Services Limited in July 2023.
The new joint venture with BlackRock is seen as a strategic move to expand JFS’s presence in the financial services sector, particularly in investment advisory. The collaboration combines JFS’s local market knowledge with BlackRock’s global expertise, positioning the JV to offer innovative solutions and capture a larger market share in the growing investment landscape.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
