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Sebi gives in-principle nod to Jio Fin-BlackRock for mutual fund entry | Mutual Fund – Top Stories

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Jio Financial Services’ joint venture with BlackRock to enter the mutual fund (MF) space in India has received the nod from the Securities and Exchange Board of India (Sebi), the company stated in an exchange filing on Friday.


The market regulator granted an in-principle approval on October 3.

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“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. The final approval for registration will be granted by Sebi subject to fulfilment by the company and BlackRock of the requirements set out in the said letter,” said Jio Financial on Friday.

 


Jio’s entry into the MF space is expected to intensify competition in the industry, which currently has over Rs 66 trillion in assets under management.


The firms inked a tie-up for the MF business in July 2023 and applied for a licence with the Indian regulator, the Securities and Exchange Board of India (Sebi), in October 2023. Both companies had announced an investment of $150 million each for the asset management business in India.


“We are excited by the opportunity to deliver affordable and innovative investment solutions to millions of people in India. With our partner Jio Financial Services, we want to contribute to the country’s evolution from a nation of savers to a nation of investors. Investing is the way for people to reach their financial goals more quickly and to accelerate wealth creation,” said Rachel Lord, head of international for BlackRock.


Jio has also planned to step into the wealth management and stock broking business in partnership with global asset manager BlackRock.

First Published: Oct 04 2024 | 8:48 PM IST



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