Sebi gives in-principle nod for Jio Financial-BlackRock's proposed mutual fund

The Securities and Exchange Board of India (Sebi) has given its in-principle approval to Jio Financial Services and BlackRock Financial Management Inc to act as co-sponsors and set up proposed mutual fund.

The NBFC arm of Reliance Industries, Jio Financial, and BlackRock Advisors Singapore Pte. Ltd have come together to create a joint venture company named 'Jio BlackRock Investment Advisers Private Limited' for the purpose of carrying out investment advisory services. This information was shared by the company through a stock exchange filing.

According to the filing, the Sebi has given its approval through a letter dated October 3. The company disclosed that the final approval for registration will be granted by Sebi, contingent upon Jio Financial and BlackRock meeting the requirements outlined in the regulator's letter to the company.

"Please note that Securities and Exchange Board of India (SEBI) vide letter dated October 3, 2024, has granted in-principle approval to the Company and BlackRock Financial Management Inc (“BlackRock”) to act as co-sponsors and set up the proposed mutual fund. The final approval for registration will be granted by SEBI subject to fulfillment by the Company and BlackRock of the requirements set out in the said letter," Jio Financial said in exchange filing on Friday.  

Over a year ago, Jio Financial Services had announced the signing of the joint venture agreement with the global investment powerhouse to enter the Indian asset management industry. Jio BlackRock Investment Advisers Private Limited officially began operations on September 6, with a focus on providing investment advisory services. Regulatory approvals are still pending. 

Jio Financial Services Limited recently announced a partnership with BlackRock Advisors Singapore Pte Ltd to establish a new investment advisory firm, Jio BlackRock Investment Advisers Private Limited. The joint venture was officially established on September 6, 2024, and will offer investment advisory services pending regulatory approvals. The Ministry of Corporate Affairs granted the Certificate of Incorporation on September 7, 2024.

In a regulatory filing, Jio Financial Services revealed its intention to invest Rs 3 crore in the initial subscription of 30,00,000 equity shares, each valued at Rs 10. 

The company led by Mukesh Ambani has also been granted approval by the Department of Economic Affairs to raise its overall cap on foreign investment (including FPIs) to 49% of the fully diluted paid-up equity share capital. According to exchange data, foreign investors currently own a 17.55% stake in the company, which accounts for nearly 53% of the shares available to the public.

In August, Jio Finance Ltd, an NBFC arm of Jio Financial Services, said it is in the advanced stages of launching home loans, which have been rolled out in beta mode. Besides, the company is going to roll out other products like loans against property and loans on securities.