As per the update from the Securities and Exchange Board of India (SEBI), the joint venture between Jio Financial Services and BlackRock has applied for a mutual fund licence with the market regulator and as per the update the application for the same in under consideration.
Jio and BlackRock’s Mutual Fund Venture Update Pending
As per the update on the approval status of mutual fund from SEBI on 31st December 2023, the update is under consideration.
It was on the 19th of October that Jio submitted its application and the SEBI’s status report showed that it was “under process”.
In order to enter the asset management business in India, the newly demerged financial services arm of billionaire Mukesh Ambani’s Reliance, Jio Financial Services Ltd and the BlackRock had announced an agreement on July 2023 to form a 50:50 joint venture with a USD 150 million investment each.
As per the statement earlier “Jio BlackRock combines Jio Financial Services’ knowledge and resources with BlackRock’s scale and investment expertise to deliver affordable, innovative investment solutions to millions of investors in India”.
Potential Digital Revolution in Mutual Funds
The potential MF may utilise a digital-first approach to democratise the ₹50 lakh crore MF industry.
In order to propel the digital delivery of financial products, this strategic alliance could tap into BlackRock’s extensive proficiency in investment and risk management in tandem with JFS’s technological capabilities and profound market expertise.
It is not the first time that BlackRock has entered in the asset management space of India. Almost five years ago, it did away with the joint venture with DSP, where it divested its 40% stake to its partner.
Post the final approval that two titans are waiting for, the joint venture of both shall definitely be force to be reckoned with in the $580 billion mutual fund industry in India.
Notably, as per the data available in the public domain, the total assets of BlackRock are around $8.2 trillion.
