Winning Bizness Desk
Mumbai: In a significant move for the mutual fund industry, the Securities and Exchange Board of India (SEBI) has granted approval for Jio Financial Services and BlackRock to enter the mutual fund market. This collaboration between Mukesh Ambani-led Jio Financial and BlackRock is expected to intensify competition in the sector. Jio Financial disclosed further details in an exchange filing on Friday, announcing that the joint venture with BlackRock Financial Management has received in-principle approval from SEBI as of October 3. Once both companies submit the required documents, SEBI is expected to give final approval for their mutual fund venture. The two companies had initially signed an agreement in July 2023 and submitted a formal application for a mutual fund license in October 2023. Both Jio and BlackRock will each invest ₹15 crores in their new venture.
Focus on Providing Competitive Investment Options
Rachel Lord of BlackRock expressed satisfaction with SEBI's approval of the joint venture, stating, "We are delighted by SEBI's decision. Together with Jio Financial Services, we aim to offer affordable and attractive investment options to millions of people in India." She further emphasized their shared vision of helping transform India from a "nation of savers" into a "nation of investors." The joint venture will also explore opportunities in wealth management and stock broking.
Jio Financial Services Listed on Stock Market in 2023
Jio Financial Services, a key player in financial services, was previously a subsidiary of Reliance Industries Group and became publicly listed in August 2023. Jio Finance, another subsidiary of Jio Financial, holds a Non-Banking Financial Company (NBFC) license, while Jio Payments Bank is also part of the same group. The Reserve Bank of India has approved Jio Financial's transition from an NBFC to a Core Investment Company. This partnership between Jio and BlackRock is expected to shake up the mutual fund industry, offering investors more diverse and cost-effective options.
