Jio Financial Services, a subsidiary of Reliance Group, has announced a collaboration with US-based BlackRock aimed at advancing wealth management and broking services in India. In an exchange filing, Jio said the partnership will be executed through a 50:50 joint venture. This initiative encompasses the establishment of a wealth management company followed by the incorporation of a brokerage firm within the Indian market.
Jio Financial Services said, "BlackRock, Inc., and BlackRock Advisors Singapore Pte have signed an agreement with the company to form a 50:50 JV for the purpose of undertaking wealth business, including the incorporation of a wealth management company and subsequent incorporation of a brokerage company in India."
The collaboration between Jio Financial Services and BlackRock was initially announced in July 2023. At that time, both entities pledged $150 million each towards a joint venture focused on entering India's asset management sector. This move was aimed at revolutionising India's asset management landscape by introducing digital-first solutions and making investment opportunities more accessible.
The official launch of this joint venture is contingent upon obtaining regulatory and statutory approvals. Additionally, both parties are awaiting approval for their mutual funds license from the Securities and Exchange Board of India (SEBI). The company will need to apply for separate licences from the SEBI for the launch of wealth management and broking businesses.
Shares of Jio Financial Services witnessed a decline in trading value, closing at Rs 354.40 apiece, representing a 4.82 per cent decrease on Monday.
The collaboration between Jio Financial Services and BlackRock signifies a strategic effort to enhance wealth management services in India. As regulatory approvals progress, the market eagerly anticipates the transformative impact of this joint venture on the country's financial landscape.
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