Jio Financial Services Applies To RBI For NBFC To CIC conversion

Jio Financial Services, the entity demerged from Reliance Industries, has applied to the Reserve Bank of India (RBI) to convert from a non-banking financial company (NBFC) to a core investment company (CIC), in line with regulatory directives. The move is part of the RBI mandate following Jio Financial Services' demerger from Reliance Industries.

According to RBI guidelines, a CIC primarily invests its assets in group companies and functions as a passive holding company, without engaging in other financial activities.

Jio Financial Services clarified that it has not initiated any bond issuance to raise funds, refuting earlier reports suggesting a potential Rs 10,000 crore bond issuance in the March quarter. The company emphasised its commitment to making disclosures in compliance with SEBI regulations and stock exchange agreements.

In the September quarter, Jio Financial Services reported a significant jump in net profit by 101 per cent on a sequential basis, despite an 8.6 per cent decline in interest income.