Shares of Jio Financial Services (JFS) gained around 1.7 percent in early trade on January 4 after the Reliance Industries' financial services arm filed papers with the market regulator to launch a joint mutual fund company with BlackRock Financial Management.
The application is being considered for an in-principle approval by the Securities and Exchange Board of India (SEBI). The joint venture between JFS and BlackRock filed the application with the capital markets regulator on October 19 and as of December 31, it showed in the updated list of mutual fund applications.
As of 9.16 am, JFS shares were trading at Rs 238.2 on the NSE, higher by 1.58 percent compared to the previous session's closing price.
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The launch of Jio Financial Services-BlackRock Asset Management Co is being keenly watched. BlackRock Asset Managers is the world’s largest fund house. Its 50:50 joint venture with Jio Financial Services marks BlackRock's return to the Indian market after it exited in 2018.
Each partner plans an initial investment of $150 million. Together, they aim to provide tech-enabled and affordable investment solutions to Indian investors.
"This is an exciting partnership between JFS and BlackRock, one of the largest and most respected asset management companies globally. The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive the digital delivery of products,” JFS president and CEO Hitesh Sethia said.
Also Read | Jio Financial-BlackRock, Abira Securities file for mutual fund licence with SEBI
The Indian mutual fund industry is one of the most competitive sectors with 45 players, as more firms looking to enter the space which manages Rs 50 trillion worth of assets.
Since listing on August 21 at Rs 262 on the National Stock Exchange, Jio Financial Service shares have slipped 5.69 percent to close at Rs 234.75 on January 3.
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