Jio Financial Services Ltd (JFS), the demerged entity of Reliance Industries Ltd (RIL), has received approval from the Reserve Bank of India (RBI) to convert from a non-banking financial company (NBFC) to a core investment company (CIC). This approval marks a significant milestone for JFS, which had submitted the application for conversion in November last year, following the demerger of RIL’s financial services business into JFS.
A core investment company, according to RBI guidelines, is one that engages primarily in the acquisition of shares and securities, with an asset size exceeding Rs 100 crore. Such companies must hold at least 90% of their net assets in investments in equity shares, preference shares, bonds, debentures, debt, or loans in group companies. Additionally, at least 60% of their net assets must be in equity investments in group companies.
JFS serves as a holding company for a range of financial services businesses through its subsidiaries. In fiscal 2024, JFS was officially demerged from Reliance Industries, positioning itself to operate a diversified set of financial services. With the RBI’s approval for conversion to a CIC, JFS is poised to strengthen its role in the financial sector, leveraging its significant assets and investments to support and expand its financial services operations.
