Reliance JFS Gets MCA Nod To Appoint Hitesh Sethia As MD

SUMMARY

Sethia has been appointed as the new MD and CEO of the company for a period of three years starting November 15, 2023

Jio Financial Services had applied for clearances related to the appointment of Sethia as MD and CEO in January this year

JFS saw its net profits jump 6% sequentially to INR 311 Cr in Q4 FY24 while operating revenues rose marginally by 0.9% QoQ to INR 418 Cr as against INR 414 Cr in Q3 FY24

Reliance’s Jio Financial Services (JFS) has received approval from the Ministry of Corporate Affairs (MCA) for the appointment of Hitesh Kumar Sethia as its new managing director and CEO.

Sethia has been appointed as the new MD and CEO of the company for a period of three years starting November 15, 2023. In a regulatory filing with the bourses, JFS said that it received the approval letter from the MCA on April 24.

“… We wish to inform you that the Ministry of Corporate Affairs vide letter dated April 24, 2024, has accorded its approval for the appointment of Shri Hitesh Kumar Sethia as Managing Director and Chief Executive Officer effective November 15, 2023, for a period of three years,” said JFS in a filing with the BSE.

However, the approval letter notes that the “expatriate managerial personnel (Sethia)” will be allowed to come to India on a “proper employment visa”. The nod for the appointment was accorded under various provisions of the Companies Act, 2013.

Jio Financial Services had applied for clearances related to the appointment in January this year.

JFS listed on the bourses in August last year after demerging from parent Reliance Industries.

The nod comes at a time when JFS is bolstering its play in the financial services space. Last year, it signed a joint venture (JV) with BlackRock to foray into the Indian asset management space under the brand name Jio BlackRock.

Earlier this month, the two announced another JV to float wealth management and brokerage businesses.

The company recently said that it was currently working to address the working capital needs of suppliers in the lending business and plans to venture into new segments such as home loans, loan against property, and loan against mutual funds in the future.

Alongside, JFS has also launched its debit card and a merchant mobile app as part payments business and has also launched the pilot of its voice box in Mumbai. In the insurance space, JFS claims to have forged tie-ups with 29 insurance companies.

Jio Financial Services saw its net profits jump 6% quarter-on-quarter (QoQ) to INR 311 Cr in the quarter ended March 2024. During the same period, the company’s operating revenue rose marginally to INR 418 Cr as against INR 414 Cr in Q3 FY24.