17 Jul 2024
Jio received approval from the Reserve Bank of India (RBI) to transition from a Non-Banking Financial Corporation (NBFC) to a Core Investment Company (CIC).
After its demerger from Reliance Industries’ financial division and a change in its shareholder pattern, RBI directed Jio Financial Services (JFS) to convert into a CIC. JFS then filed an application with RBI to become an independent investment entity.
A Core Investment Company (CIC) owns assets exceeding ₹100 crore, and at least 90% of them must be invested in debentures, bonds, debt, or loans extended to group firms, equity and preference shares. A CIC deals mainly in the acquisition of shares and securities.
This transition will change JFS’s operational structure. As a CIC, it will become more compliant with regulatory frameworks and have a streamlined organisational structure.
JFS can now act as a diversified financial services arm and support Reliance Industries’ business ventures. This will allow JFS to allocate capital to its subsidiaries efficiently.
JFS currently offers investment and lending, payment gateway, and banking services. Â Â