According to an updated list of MF applicants released by the market regulator, the Securities and Exchange Board of India (Sebi) is in the process of providing in-principle approval to Jio Financial Services Ltd and BlackRock Financial Management to commence mutual fund business in India.
Jio Financial, which has an asset management joint venture (JV) with BlackRock, filed the application for an MF license on October 19, 2023, and the present status is “under process.” Sebi updates the application list at the end of each quarter.
Jio Financial Services, a subsidiary of billionaire Mukesh Ambani’s Reliance Group, and US-based BlackRock Inc announced a 50:50 joint venture to deliver asset management services in India in July 2023.
Jio Financial stated that the two companies intend to invest $150 million each in the joint venture.
The asset management sector in India has grown rapidly in recent years, with Rs 49 lakh crore in assets under management as of November 30, 2023.
Through the partnership with JFS, and assuming Sebi permission, BlackRock would re-enter India’s asset management business nearly 5 years after terminating its JV with DSP by selling its 40% holding to the partner.
Jio BlackRock brings BlackRock’s deep expertise and talent in investment management, risk management, product excellence, and access to technology, operations, scale, and intellectual capital across markets, while JFS contributes local market knowledge, digital infrastructure capabilities, and robust execution capabilities, according to a joint statement from the firms.
“The collaboration will bring a new player to the Indian market with a unique combination of scope, scale, and resources.” “JFS and BlackRock intend to invest $150 million each in the joint venture,” they stated.