Jio Financial Services, BlackRock merge with AMC to take over mutual fund business

Jio Financial Services and BlackRock Inc. on Tuesday announced the formation of two joint ventures to take on mutual fund business. The two companies are Jio BlackRock Asset Management Private Limited and Jio BlackRock Trustee Private Limited.

“…” Jio BlackRock Asset Management Private Limited” and “Jio BlackRock Trustee Private Limited” have been incorporated on October 28, 2024 and will inter alia carry out the principal business of mutual funds, subject to regulation Department approval,” Jio Financial Services said in a regulatory filing.

Jio Financial Services has invested $825 million rupees to buy 8.25 billion equity shares, or 50% stake, in Jio BlackRock Asset Management, $40 lakh in exchange for 400,000 shares, or 50% stake, in Jio BlackRock Trustee.

The joint ventures were formed pursuant to the in-principle approval obtained by Jio Financial Services and BlackRock Financial Management Inc. as co-sponsors and to set up the proposed mutual funds.

In July 2023, Jio Financial Services (JFS), a subsidiary of Reliance Group, and BlackRock announced the establishment of a 50:50 joint venture-Jio BlackRock. JFS received in-principle approval from capital markets regulator Sebi in October to set up the proposed mutual fund as a co-sponsor along with BlackRock Financial Management.

The two companies will focus on regulatory-approved mutual fund business and have obtained registration certificates from the Ministry of Corporate Affairs on October 28.

Jio payment solutions gets approval from Reserve Bank of India (RBI)

In another development, Jio Financial Services also announced that its wholly-owned subsidiary Jio Payment Solutions Limited (JPSL) has received approval from the Reserve Bank of India (RBI) to operate as an online payments aggregator.

“…the Reserve Bank of India has granted a certificate of authority to JPSL under Section 7 of the Payments and Settlement Systems Act, 2007, to operate as an ‘online payments aggregator’ with effect from October 28, 2024,” Jio Financial said. On the exchange in the file.

Jio Financial Services shares were down 0.63% as of 11:50 a.m. $314.75 per person on BSE.