Mukesh Ambani’s daughter Isha and former CAG Rajiv Mehrishi have been appointed as directors on the board of demerged financial services unit of Reliance Industries Ltd, the company said on 8 July.
Earlier, Reliance announced its plans to demerge its financial services undertaking into Reliance Strategic Investments Limited (RSIL) and rename and list it as Jio Financial Services Limited (JFSL).
Based on proprietary data analytics, the financial arm of Reliance will lend to consumers and merchants and eventually branch out to insurance, payments, digital broking, and asset management.
As per the details, every Reliance shareholder will get one share of the new firm for every share held in the parent.
The effective date of the demerger has been fixed as 1 July, the firm has fixed 20 July as the record day for allocating shares of the new company, according to the company’s stock exchange filing.
JFSL will complement Reliance’s consumer businesses which would include India’s largest wireless operator with about 428 million users and a top retail chain with over 17,000 stores.
“In accordance with provisions of the (demerger) Scheme, Reliance Strategic Investments Limited (RSIL) shall issue and allot one fully paid-up equity share of RSIL having face value of ₹10 each for every one fully paid-up equity share of ₹10 each of the company to the shareholders of the company whose names are recorded in the register of members and/or records of the depository as on the record date,” the firm said in a stock exchange filing.
At a meeting held on 7 July, the board of directors of the new company approved Isha Mukesh Ambani as a non-executive director, while Reliance executive Anshuman Thakur too has been appointed as a non-executive director.
It said former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of the Indian Banks’ Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, have been appointed independent directors.
“Appointment of directors is subject to the approval of members of RSIL and the Reserve Bank of India and will be effective from the date of receipt of approval of the Reserve Bank of India,” the filing said.
Banker Hitesh Kumar Sethia has been appointed managing director and chief executive officer of RSIL for three years.
“Hitesh Sethia is a financial services executive with over two decades of experience across Europe, Asia (India & Greater China), and North America. He has spent most of his career at ICICI Bank gaining functional experience and handling leadership roles across various departments such as credit, retail banking, corporate banking, and transaction banking coupled with an understanding of technology applications in financial services,” the filing said giving a brief profile of the new CEO.
With agency inputs.
Download The Mint News App to get Daily Market Updates & Live Business News.
Updated: 08 Jul 2023, 09:33 PM IST