Jio Financial Services and BlackRock Inc. on Tuesday announced the incorporation of two joint venture companies to undertake the mutual fund business. The two companies incorporated are Jio BlackRock Asset Management Private Limited and Jio BlackRock Trustee Private Limited.
“…two companies, “Jio BlackRock Asset Management Private Limited” and “Jio BlackRock Trustee Private Limited” have been incorporated on October 28, 2024, to carry on, inter alia, the primary business of mutual fund, subject to regulatory approvals,” Jio Financial Services said in a regulatory filing.
Jio Financial Services has invested ₹82.50 crore for 8.25 crore equity shares, or 50% stake, in Jio BlackRock Asset Management and ₹40 lakh for 4 lakh shares, or 50% stake, in Jio BlackRock Trustee.
These joint venture companies are incorporated pursuant to the in-principle approval received by Jio Financial Services and BlackRock Financial Management Inc. to act as co-sponsors and set up the proposed mutual fund.
In July 2023, Reliance Group’s Jio Financial Services (JFS) and BlackRock announced the creation of a 50:50 joint venture – Jio BlackRock. JFS received the in-principle approval from capital market regulator Sebi in October to act as co-sponsors and set up the proposed mutual fund along with BlackRock Financial Management.
The companies will focus on mutual fund operations subject to regulatory approvals, and have received their incorporation certificates from the Ministry of Corporate Affairs on October 28.
Jio Payment Solutions gets RBI nod
In a separate development, Jio Financial Services also announced that its wholly owned subsidiary, Jio Payment Solutions Limited (JPSL), has received RBI approval to operate as an online payment aggregator.
“…the Reserve Bank of India has granted certificate of authorisation to JPSL to operate as an ‘Online Payment Aggregator’ under Section 7 of the Payment and Settlement Systems Act, 2007, with effect from October 28, 2024,” Jio Financial said in an exchange filing.
At 11:50 AM, Jio Financial Services shares were trading 0.63% lower at ₹314.75 apiece on the BSE.
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