Jio Financial Services and BlackRock Receive SEBI Approval to Co-Sponsor a Mutual Fund
In an important development for the Indian financial market, Jio Financial Services Limited (JFS) announced on October 4, 2024, that it has received in-principle approval from the Securities and Exchange Board of India (SEBI). The approval allows JFS to collaborate with BlackRock Financial Management Inc. (BlackRock) as co-sponsors to launch and manage a mutual fund. This joint venture represents a significant move for both companies in expanding their presence in India’s growing mutual fund industry.
After applying for permission to enter such a partnership on October 19, 2023, it sought SEBI approval. The two companies had therefore been working towards this end for some time now with a first joint press release dating to July 26, 2023. This had stated the intention of JFS and BlackRock to establish the mutual fund that was submitted to stock exchanges by way of JFS’s then-parent company, Reliance Industries Limited. On January 5, 2024, another exposition on the proposal was furnished to address additional details about the tie-up involved.
SEBI Official letter has been received by the mutual fund on October 3, 2024 stating in principle approval accorded for JFS and BlackRock to co-sponsor the mutual fund. This is a crucial step towards launching a new mutual fund; however, registration of the mutual fund will be confirmed only after the satisfaction of specified terms arrived at by SEBI. The conditions stated in SEBI’s letter need to be met by both JFS and BlackRock. Upon these conditions being met, the mutual fund will obtain formal registration and be launched for investors in the market.
The formal communication by SEBI reached JFS on October 4, 2024, at 10:30 AM IST. This was a significant milestone between the two companies. The combination of JFS with BlackRock will use BlackRock’s global experience in asset management along with a local strong presence by JFS in India. The two entities would provide a diversified range of schemes in mutual funds suited for a wide segment of investors in the country.
The venture reflects JFS’s ambitious growth plans in the financial services arena and marks a continuation of BlackRock’s interest in expanding its footprint in India. With SEBI approval now in place, the companies are one step closer to launching their mutual fund offerings, which will offer diversified investment options to Indian investors.
Most important step that these ventures have undertaken on their journey is the approval granted by SEBI to the proposal submitted by JFS and BlackRock; investors are eagerly waiting for some more information regarding the launch of the proposed fund that would be launched early next year, with 2024 being specific.
This update adds another significant achievement to JFS’s growing list of partnerships and collaborations within the financial services industry. The mutual fund is expected to play a key role in providing a wide range of investment products, potentially boosting the mutual fund industry in India.
