MUMBAI: Jio Financial Services and BlackRock Inc. have formalised two joint venture companies, Jio BlackRock Asset Management Pvt Ltd and Jio BlackRock Trustee Pvt Ltd, aimed at entering the mutual fund market.
These ventures, established on October 28, 2024, are set up for mutual fund operations, subject to regulatory approvals, as detailed in Jio Financial Services’ regulatory filing.
In this partnership, Jio Financial Services has invested Rs82.50 crore for a 50 per cent stake (8.25 crore equity shares) in Jio BlackRock Asset Management and Rs40 lakh for an equivalent 50 per cent stake (4 lakh shares) in Jio BlackRock Trustee.
The joint ventures stem from the in-principle approval by the Securities and Exchange Board of India (SEBI) granted in October 2023, allowing Jio Financial and BlackRock to co-sponsor and develop the proposed mutual fund business.
RBI authorisation
In separate news, Jio Financial Services announced that Jio Payment Solutions Ltd. (JPSL), its wholly owned subsidiary, has obtained authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
As of October 28, 2024, JPSL has received the required certification under Section 7 of the Payment and Settlement Systems Act, 2007, enabling it to expand its digital payment services.
These developments mark significant expansions for Jio Financial, both in the mutual funds sector and in digital payment solutions.
