In November 2023, Jio Financial Services applied to the RBI to convert itself into a core investment company from a non-banking financial company
According to RBI guidelines, CICs are companies predominantly investing in their group entities through equity, preference shares, convertibles, or loans
JFS saw its consolidated profit after tax (PAT) double sequentially to INR 668.2 Cr in Q2 FY24, while its operating revenue increased over 61% quarter-on-quarter to INR 608 Cr
Update | July 12, 12:37 PM
Months after Inc42 reported that Jio Financial Services (JFS) applied to the Reserve Bank of India (RBI) to convert itself into a core investment company (CIC) from a non-banking financial company (NBFC), following a regulatory mandate, the company has now officially secured approval from the central bank, it said in an exchange filing.
Original Story| November 22 , 12:54 PM
Jio Financial Services (JFS), which was recently carved out from Reliance Industries Ltd (RIL), has applied to the Reserve Bank of India (RBI) to convert itself into a core investment company (CIC) from a non-banking financial company (NBFC) following a regulatory mandate.
JFS, demerged from RIL in July, was listed on the stock exchanges in August this year. The deep-pocket fintech entity has emerged as one of the major competitors to the fintech startups across segments, including payments, insurance and asset management.
In a Tuesday (November 21) exchange filing, the company reported submitting an application for a shift from NBFC to CIC to modify its shareholding pattern and control post the demerger from Reliance Industries, following RBI regulations.
According to RBI guidelines, CICs are companies predominantly investing in their group entities through equity, preference shares, convertibles, or loans. These entities serve as passive holding companies solely for maintaining control over their group companies without engaging in other financial activities.
Jio Financial Services has denied reports of raising money through bond issuance, refuting a Reuters claim that suggested a potential fundraising of up to INR 10,000 Cr.
The company clarified that it complies with disclosure obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and agreements with stock exchanges.
Earlier this year, JFS collaborated with BlackRock, the world’s largest asset management company, to enter India’s mutual fund market.
Recently, JFS announced that the RBI had approved the appointments of Isha Ambani, Anshuman Thakur, and Hitesh Kumar Sethia as directors of the company.
The company recently launched a soundbox, along with a range of other offerings – from personal and merchant lending to insurance and retail payments.
JFS competes with the likes of Paytm, PhonePe, BharatPe, PB Fintech, InsuranceDekho, CRED, Zerodha and Groww in the fintech space.
The company saw its consolidated profit after tax (PAT) double sequentially to INR 668.2 Cr in Q2 FY24, while its operating revenue increased over 61% quarter-on-quarter to INR 608 Cr.
Inc42’s analysis forecasts the domestic fintech market to reach a market size of $2.1 Tn by 2030, with a projected 18% CAGR from 2022. Within this, lending tech is anticipated to dominate, constituting the majority at $1.3 Tn.
JFS aims to decode the fintech business with a direct-to-consumer (D2C) approach, emphasising cost efficiencies and facilitating personalised customer interactions.
