Jio Financial, BlackRock file papers with SEBI for MF business

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Jio Financial Services and BlackRock Management have filed papers for their mutual fund joint venture with the Securities and Exchange Board of India (SEBI).

SEBI’s website showed that the application was filed on October 19, 2023 and is currently under consideration for the regulator’s “in-principle approval” as of December 31, 2023.

BlackRock Asset Managers is world’s largest asset manager. It had operated in India in a JV with the DSP Group. However, the partnership under DSP BlackRock Mutual Fund ended in 2018, following which BlackRock announced its plans to re-enter India with Jio Financial. The two partners are planning to invest $150 million each in the JV.

Also read: From NBFC to CIC: The way ahead for Jio Financial Services

Some reports had suggested that the JV was planning to acquire an Indian fund house to kick-start its mutual fund operations rather than applying for a new licence.

An application by Abira Securities is under consideration for SEBI’s in-principal approval. This is the second such application for the Kolkata-based stock broking house which had sought a MF licence in 2022. On the other hand, Angel One received the in-principle approval on February 8, 2023 and is awaiting for the final go ahead.

At present, the Indian mutual fund industry has around 45 players. Bajaj Finserv Asset Management, Helios Mutual Fund and Zerodha Fund House started operations in 2023. Old Bridge Capital Management and Unifi Capital Pvt are lined up to set up their mutual fund operations in 2024.