The Reserve Bank of India has give an apporoval to Jio Financial Services to become a core investment company. In a stock filing, Jio Financial said that “further to the disclosure dated November 21, 2023, the company has today received from the Reserve Bank of India approval for conversion of the Company from Non-Banking Financial Company to Core Investment Company.”
What is a core investment company?
As per the norms mandated by the Reserve Bank of India, core investment company is a specialised Non-Banking Financial Company that has a minimum asset worth Rs 100 crore. Back in 2016, the Central Bank had issued a statement regarding CIC’s primary business objectives. According to the RBI statement, a CIC has to focus on acquisition of securities and shares. This business is governed by certain conditions.
What changes for Jio Financial Services?
With this approval, Jio Financial Services will now have more flexibility in terms of its day-to-day operations. Now, it can emphasise on core investment rather than other finance activities. Jio Financial can now aim for diversification of its investment portfolio with ever-changing market conditions.
Jio Financial Services: Journey so far
Jio Financial Services Ltd was initially incorporated as Reliance Strategic Investments Private Limited on July 22, 1999, under the Companies Act of 1956. The company later changed its name to Reliance Strategic Investments Limited, receiving a new certificate of incorporation on January 14, 2002. On July 25, 2023, the company’s name was changed again to Jio Financial Services Limited, and a fresh certificate of incorporation was issued. A demerged entity of energy-to-telecom conglomerate RIL, Jio Financial made its debut on the D-Street on August 21, 2023.