Sebi Approves Jio Financial & BlackRock Mutual Fund Venture | Stock Market Update

In a significant development for the Indian financial landscape, Jio Financial Services Ltd, a spin-off from Mukesh Ambani-led Reliance Industries Ltd, has gained in-principle approval from the Securities and Exchange Board of India (SEBI) to launch its mutual fund operations. This venture is being established in collaboration with BlackRock Financial Management, the world’s largest asset manager, which manages assets exceeding $10 trillion.

As per a regulatory update from Jio Financial Services, SEBI’s letter dated October 3, 2024, has granted an in-principle endorsement for Jio and BlackRock to act as co-sponsors in this venture. The final registration will be contingent upon meeting the conditions outlined in SEBI’s communications. This approval marks a significant step forward for Jio Financial Services as it aims to expand its offerings in the Indian financial services sector.

Also Read: For insights into the future prospects of Jio Financial Services and its impact on the investment landscape, exploring the strategic directions of the company can provide valuable information.

Just days after the demerger from Reliance Industries in July 2023, Jio Financial Services announced a new phase of growth through a 50:50 joint venture with BlackRock to develop asset management services tailored for the Indian market. Subsequently, the partnership led to a second joint venture in April, focused on wealth management and broking services. This strategic alliance highlights the ambition of Jio Financial Services to redefine financial investments in India.

Rachel Lord, who heads international operations for BlackRock, stated, “Together with Jio Financial Services, we aspire to transform India from a nation of savers to one of investors. Effective investing can expedite people’s progress towards financial goals and foster wealth generation.” This partnership is poised to bring innovative investment solutions to a wider audience in India.

Also Read: The launch of the JioFinance app in its beta version underscores Jio’s commitment to facilitating easier access to financial services.

The forthcoming mutual fund is expected to adopt a digital-first strategy, aimed at democratizing access to India’s growing mutual fund sector, valued at approximately ₹50 lakh crore. Notably, Jio Financial Services has witnessed impressive financial growth, with its consolidated net profit soaring from ₹31 crore in the previous fiscal year to an astonishing ₹1,605 crore in FY24. The company’s revenue saw a slight increase from ₹414 crore in the December quarter to ₹418 crore.

Jio Financial Services’ business framework is built around four key pillars: lending and leasing, payment solutions and payments bank, insurance broking and mutual funds, coupled with wealth management and broking services. Additionally, the company is enhancing its lending portfolio through secured product offerings including supply chain financing, loans against mutual funds, and device financing solutions. On the stock market, shares of Jio Financial Services experienced a dip of 1.95%, ending at ₹338.75 per share on the BSE.