Jio-BlackRock Seek SEBI Nod for Mutual Fund Venture

4 Jan 2024 , 02:41 PM

The joint venture between Jio Financial Services and BlackRock has taken a significant step forward by applying for a mutual fund license with the Securities and Exchange Board of India (SEBI). As of the latest update from SEBI on December 31, 2023, the application from Jio Financial Services and BlackRock Financial Management is currently under consideration.

Jio Financial Services submitted its application on October 19, and SEBI’s status report indicates that the application is ‘under process.’

In July 2023, Jio Financial Services Ltd, the newly demerged financial services arm of Mukesh Ambani’s Reliance, and BlackRock announced a 50:50 joint venture with a substantial investment of USD 150 million each. The primary objective of this venture is to enter the asset management business in India. The proposed mutual fund, if approved, is expected to leverage a digital-first approach to democratize the ₹50 lakh crore mutual fund industry.

The strategic collaboration aims to combine BlackRock’s extensive expertise in investment and risk management with Jio Financial Services’ technological capabilities and deep market knowledge. The goal is to revolutionize the digital delivery of financial products.

This joint venture marks BlackRock’s return to India’s asset management sector after nearly five years. The company is partnering with Jio Financial Services to tap into the evolving financial landscape, bringing together BlackRock’s global experience and JFS’s understanding of the Indian market. BlackRock had previously concluded a joint venture with DSP, divesting its 40% stake to its partner.

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