Jio Financial, BlackRock Receive Approval From SEBI To Establish Mutual Fund Business

The firm said that it would act as co-sponsors with BlackRock and establish the proposed mutual fund after it received an in-principle approval from SEBI

The new JV brings together BlackRock’s experience in investment management, risk management, and technology with Jio Financial’s knowledge of the local market and digital infrastructure.

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Jio Financial Services Ltd (JFS) announced on Friday that the Securities and Exchange Board of India (SEBI) provided an approval to the firm and BlackRock Financial Management to set up a mutual fund.

The firm, which has spun off completely from Reliance Industries, said that it would act as co-sponsors with BlackRock and establish the proposed mutual fund after it received an in-principle approval from the capital markets regulator, reported Moneycontrol.

Issuing an official statement, Jio Financial noted, “The final approval for registration will be granted by SEBI subject to fulfillment by the Company and BlackRock of the requirements set out in the said letter.”

Last year around July 2023, both the companies announced an agreement to establish ‘Jio BlackRock’, a joint venture which will be owned in a 50:50 ratio. This would mark BlackRock’s return to the Indian market after it took an exit in 2018.

After making its debut in the Indian stock market, Jio Financial held its first annual general meeting. The company’s management said that the new joint venture would facilitate in bringing more investment products and leadership for the new entity has been identified.

The new JV brings together BlackRock’s experience in investment management, risk management, and technology with Jio Financial’s knowledge of the local market and digital infrastructure.

Earlier this year in April, both Jio Financial and BlackRock entered into a joint venture for wealth management and broking business in the country. In September, Jio Financial announced a JV with BlackRock Advisors Singapore Pte Ltd to set up a new investment advisory firm, Jio BlackRock Investment Advisers Private Limited. The new entity remains subject to getting necessary approvals from the regulator.