Jio Financial Services has received 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 announced in an exchange filing on Thursday.
Jio Financial Services is a spin-off from Reliance Industries Ltd, which operates in sectors ranging from energy to telecom. The application for the conversion was submitted in November last year.
A CIC is a specialized type of NBFC with assets exceeding ₹100 crore. According to the RBI’s guidelines from December 2016, a CIC’s main role is to invest in shares and securities under specific conditions. At least 90% of a CIC’s net assets must be invested in group company bonds, debentures, equity shares, preference shares, debt, or loans.
All CICs with assets over ₹100 crore must comply with RBI regulations.
Jio Financial Services made its stock market debut on August 21, 2023. On Thursday, its share price closed flat at ₹348.05 on the BSE.
The parent company, Reliance Industries, will release its June quarter financial results on Friday, July 19.
For the fourth quarter ending in March 2024, Jio Financial Services reported a 6% increase in consolidated net profit, reaching ₹311 crore, up from ₹294 crore in the December quarter. For the entire fiscal year FY24, the company’s consolidated net profit jumped significantly from ₹31 crore to ₹1,605 crore. Revenue saw a slight increase from ₹414 crore in the December quarter to ₹418 crore.
Besides investment and lending, Jio Financial Services also provides payment gateway, banking, and payment aggregator services.
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