Jio Financial becomes core investment company. What changes for you?
Jio Financial Services Ltd has secured approval from the Reserve Bank of India (RBI) to transition from a Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC). The company disclosed this development in an exchange filing, stating that the RBI granted its approval on Thursday. This move follows JFS's application to the RBI in November last year, seeking conversion from an NBFC to a CIC.
Transition follows demerger from Reliance Industries
The application for transition was made after the financial services business was demerged from Reliance Industries, leading to the formation of JFS. According to RBI regulations, a CIC is a specialized type of NBFC with an asset size greater than ₹100 crore. The primary role of a CIC is to acquire shares and securities under certain conditions, including holding not less than 90% of its net assets in investments in group companies.
JFS's performance and future prospects
JFS made its official debut on the stock exchanges on August 21, 2023. On Thursday's session, the company's stock price closed flat at ₹348.05 apiece on BSE. The parent company, Reliance Industries, is set to release its June quarter financial results on Friday, July 19. In the fourth quarter that ended in March 2024, JFS reported a 6% rise in consolidated net profit totaling ₹311 crore, due to an improvement in income.
