The joint venture between Jio Financial Services and BlackRock has applied for a mutual fund licence with the market regulator, and the application is currently under consideration, according to a Securities and Exchange Board of India (SEBI) update.
An update on mutual fund approval status from SEBI as of December 31, 2023, lists Jio Financial Services and BlackRock Financial Management among the applicants under consideration for a mutual fund licence.
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Jio submitted its application on October 19, and SEBI’s status report showed that it was “under process”.
Jio Financial Services Ltd, the newly demerged financial services arm of billionaire Mukesh Ambani’s Reliance, and BlackRock announced an agreement in July 2023 to form a 50:50 joint venture with a USD 150 million investment each to enter the asset management business in India.
“Jio BlackRock combines Jio Financial Services’ knowledge and resources with BlackRock’s scale and investment expertise to deliver affordable, innovative investment solutions to millions of investors in India,” an earlier statement said.
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The potential MF may utilise a digital-first approach to democratise the ₹50 lakh crore MF industry.
The strategic alliance intends to harness BlackRock’s extensive proficiency in investment and risk management, coupled with JFS’s technological capabilities and profound market expertise, to propel the digital delivery of financial products.
By collaborating with Jio Financial Services, BlackRock is poised to re-enter India’s asset management sector nearly five years after concluding its joint venture with DSP, where it divested its 40% stake to its partner.
Pending the final approval from the capital market regulator, Jio Financial and BlackRock are poised to emerge as a formidable disruptor akin to Reliance Jio in the $580 billion mutual fund industry in India.
As of 2022, BlackRock boasts assets totalling $8.2 trillion, according to publicly available data.
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Published: 03 Jan 2024, 09:17 PM IST