Jio Financial Services said that the final approval for registration from SEBI will be contingent upon certain requirements to be fulfilled by it and BlackRock
The in-principle approval was issued by SEBI in a letter dated October 3
This comes more than a year after Jio Financial Services said that it signed a joint venture agreement with the global investment giant to foray into the Indian asset management space
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Jio Financial Services and BlackRock have received in-principle approval from the Securities and Exchange Board of India (SEBI) to set up their proposed mutual fund business.
“… Securities and Exchange Board of India (SEBI) vide letter dated October 3, 2024 has granted in-principle approval to the Company and BlackRock Financial Management Inc to act as co-sponsors and set up the proposed mutual fund,” Jio Financial Services said in a filing with the BSE.
The financial services company said that the final approval for registration from SEBI will be contingent upon certain requirements to be fulfilled by it and BlackRock.
This comes more than a year after Jio Financial Services said that it signed a joint venture (JV) agreement with BlackRock to foray into the Indian asset management space. At the time, it said that Jio Financial Services and BlackRock would target an initial investment of $150 Mn each in the JV, where both entities will own 50% stake each in the newly formed digital-first company.
Thereafter, in October last year, Jio Financial Services filed an application with SEBI for a mutual fund licence.
It is pertinent to note that SEBI approves mutual applications in two steps. First, the applicants get in-principle approval, enabling them to set up an asset management company, which is followed a few months later by final nod.
In April this year, Jio Financial Services also signed another JV with BlackRock to set up wealth management and brokerage ventures. At the time, the financial services company said that the move would enable it to offer digital-first products and “democratise” access to investment solutions.
With this, Jio Financial Services-BlackRock has become the latest entity to receive SEBI approval for its mutual fund foray. In the past one year, the regulator has issued licences to the likes of Zerodha, Old Bridge Capital Management, Helios Capital, among others, for offering mutual funds.
The approval comes at a time when India’s mutual fund ecosystem continues to see healthy growth. As a result of this, new players like Zerodha and Groww have launched multiple mutual funds in the past one year.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.