Jio Financial Seeks New SEBI License For Mutual Funds
Reliance Industries' fintech arm, Jio Financial Services, has taken steps to secure a mutual fund license, bypassing acquisition routes into the sector. They've applied to the Securities and Exchange Board of India (SEBI) for an in-principle approval for a mutual funds license in collaboration with BlackRock.
The application, filed in October, signals their intent to establish a presence in the Indian asset management domain. This move clarifies their strategy to opt for a new license rather than acquiring existing entities.
SEBI follows a two-step process to approve MF applications, granting in-principle approval first, enabling the setup of an asset management company, followed by final approval later on.
This development arrives amid SEBI's accelerated approval process for MF licenses, with recent approvals for entities like Zerodha, Old Bridge Capital Management and Helios Capital since last March.
Jio Financial and BlackRock plan to invest USD 150 Mn each for the launch of Jio BlackRock, focusing on 'digital-first offerings' to disrupt India's AMC space.
The entry of Jio Financial into the AMC realm, backed by a conglomerate and BlackRock's expertise, intensifies competition, coinciding with Zerodha and Groww's recent moves into the mutual funds sector.
The mutual fund industry in India, valued at Rs 49.04 Lakh Cr, continues to grow, notably appealing to retail investors with over 25 per cent CAGR since the pandemic's onset. Platforms like Groww, Angel One, and PhonePe are now key distributors, collectively contributing to a substantial portion of new SIPs opened recently.
