Reliance Industries‘ financial subsidiary Jio Financial Services saw a notable 5% increase during today’s intraday session, hitting ₹371.95 per share. This increase comes after the company announced on Monday that it had signed a deal to form a 50:50 joint venture with BlackRock through an exchange filing.
The project intends to take part in wealth management activities, such as starting a wealth management business and a brokerage firm in India later on.
“The recent collaboration enhances the Company’s partnership with Blackrock, Inc., building upon a previously announced 50:50 joint venture on July 26, 2023. This joint effort aims to revolutionize India’s asset management sector by prioritizing digital services and broadening accessibility to investment opportunities for Indian investors,” stated the company in a regulatory disclosure.
The company also told investors that statutory and regulatory clearances are needed before launching the wealth management and broking business.
Also Read | Sensex falls 500 points, Nifty approaches 22,100
The increase of demat accounts in recent years has led to a notable expansion in the brokerage and wealth management sector in India. A Reuters story that quoted Jefferies claims that wealth managers in India are in charge of managing the $1–1.2 trillion in financial assets that high net worth individuals in the nation own.
Forecasts suggest bright futures for the wealth management sector, with a significant increase in high-net-worth people (HNIs) and ultra-high-net-worth individuals (UHNIs) anticipated in India. The number of people earning more than Rs. 1 crore has increased by 15% over the last five years, and predictions indicate that in the next five years, their numbers will rise to 3.40 lakhs, which will support the sector’s growth.
To enter the Indian asset management market, Jio Financial Services and BlackRock announced in July 2023 a 50:50 joint venture with a USD 150 million investment each. On October 19, Jio Financial Services filed their application with the Securities and Exchange Board of India (Sebi). Sebi’s December 31, 2023, status report states that the application is “under process.”
Jio Financial Services and BlackRock Financial Management are two of the applicants being considered for a mutual fund licence, according to a report on the Sebi’s mutual fund approval status as of December 31, 2023.
Concerning Jio Financial Services
Jio Financial Services is a non-banking, non-deposit taking financial firm that specializes in insurance broking, payments bank operations, retail lending, merchant financing, and payments solutions.
The company focuses on individuals and small enterprises in India’s urban, semi-urban, and rural areas, carefully targeting varied client categories. Offering a wide range of sustainable financial services is its main goal.
Through subsidiary companies including Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), Jio Financial Services oversees its financial activities. It also runs Jio Payments Bank Limited, a joint venture (JPBL).
(Disclaimer: Before making any investing decisions, we encourage investors to consult with licensed professionals.)
Read Also Related News | Jio Financial Services experiences a 14% surge in share price
