Jio Financial services has submitted an application for conversion of the company from NBFC to CIC
New Delhi: Jio Financial Services, an arm of Reliance Industries Ltd (RIL), is seeking shareholders’ nod for raising the foreign direct investment limit in the company up to 49 per cent, a filing said on Thursday.
The company agenda for e-voting by shareholders to approve foreign investments (including foreign portfolio investments) in the equity share capital of the company up to 49 per cent of the paid-up equity share capital of the company post conversion as Core Investment Company (CIC).
This would be subject to regulatory clearance, Jio Financial Services said in a regulatory filing.
The cut-off date, to determine shareholders who are eligible to vote on the proposal, was fixed as May 17, a regulatory filing stated. The e-voting facility will be available from May 24 to June 22, it said.
The company is a systemically important non-deposit-taking Non Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI).
Besides, it has also sought approval for alteration of the objects clause of the Memorandum of Association of the company.
As per the Consolidated FDI Policy dated October 15, 2020, foreign direct investment in a company engaged in financial services activities regulated by financial sector regulators (including RBI) is 100 per cent under the automatic route, and accordingly, no approval was required to be sought by the company, it said.
As mandated by the RBI while granting its approval for change in the shareholding pattern and control of the company pursuant to the Scheme, the company has submitted an application for conversion of the company from NBFC to Core Investment Company (CIC).
Foreign investment in a CIC is permitted under Government approval route, it added.
The board at its meeting held on December 27, 2023, has already approved foreign investments (including foreign portfolio investments) in the equity share capital of the company up to 49 per cent effective upon the conversion of the company into CIC.
In addition, the company also sought approval for appointment of Rama Vedashree as an independent director of the company.
