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Jio Financial Services’ joint venture with BlackRock to enter the mutual fund (MF) sector in India has received approval from the Securities and Exchange Board of India (Sebi), the company said in an exchange filing on Friday .
The market regulator granted approval in principle on October 3.
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“Sebi, in a letter dated October 3, 2024, has granted in-principle approval to the company and BlackRock Financial Management Inc to act as co-sponsors and establish the proposed mutual fund. Final approval for registration will be granted by Sebi subject to compliance by the Company and BlackRock with the requirements set out in the said letter,” Jio Financial said on Friday.
Jio’s entry into the MF space is expected to intensify competition in the sector, which currently has over Rs 66 trillion in assets under management.
The companies signed a tie-up for the MF business in July 2023 and applied for a license from the Indian regulator, the Securities and Exchange Board of India (Sebi), in October 2023. The two companies had announced an investment of Rs 150 million. dollars each for the asset management business in India.
“We are excited about the opportunity to bring affordable and innovative investment solutions to millions of people in India. With our partner Jio Financial Services, we want to contribute to the country’s evolution from a nation of savers to a nation of investors. Investing is the way for people to achieve their financial goals faster and accelerate wealth creation,” said Rachel Lord, Global Head of BlackRock.
Jio also plans to enter the wealth management and stock broking business in partnership with global asset manager BlackRock.
First publication: October 4, 2024 | 8:48 p.m. STI