Jio Financial Services Ltd (JFSL) is an Indian financial services company, based in

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

. Originally a subsidiary of

Reliance Industries Reliance Industries Limited is an Indian multinational conglomerate headquartered in Mumbai. Its businesses include energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media, and textiles. Reliance is the ...

(RIL), it was demerged as an independent entity and listed on the Indian stock exchanges in August 2023. The company provides financial services, including payment services and insurance broking. Its subsidiary Jio Finance holds an

NBFC A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that is not legally a bank; it does not have a full banking license or is not supervised by a national or international banking regulator ...

license from the RBI. Another subsidiary, Jio Payments Bank, is also a

payments bank Payments banks are a new model of banks, conceptualised by the Reserve Bank of India (RBI), which cannot issue credit. These banks can accept a restricted deposit, which is currently limited to Indian rupee, ₹200,000 per customer and may be inc ...

registered in India.

History

Jio Financial Services was initially a financial services subsidiary of

. In July 2023, it was spun-off via a

demerger A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. It is the converse of a Mergers and acquisitions, merger or acquisition. A demerger can take place through a cor ...

, with shareholders of Reliance Industries receiving one equity share of Jio Financial Services for every share they held in Reliance. Reliance Industries transferred Rs 15,500 crore of cash and liquid investments to Jio Financial Services as part of the demerger scheme. This gave Jio Financial Services a liquid asset base of Rs 20,700 crore. JFSL was listed on the stock exchanges on 21 August 2023. Following the demerger and listing, JFSL was briefly a part of

Nifty 50 The NIFTY 50 is an Indian stock market index that represents the Capitalization-weighted index#Free-float weighting, float-weighted average of 50 of the largest Indian companies listed on the National Stock Exchange of India, National Stock E ...

BSE SENSEX The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 ...

and FTSE indices, but was removed from these indices over the following weeks as it did not meet their inclusion criteria. In July 2023, JFSL entered the asset management company (AMC) business, by forming a 50:50 joint venture with

BlackRock BlackRock, Inc. is an American Multinational corporation, multinational investment company. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager ...

called Jio BlackRock. In April 2024, JFSL and BlackRock announced a partnership in wealth management and broking business. In May 2024, JFSL launched JioFinance, an app with digital payments, loans and insurance offerings.

Controversies

Related party transactions

In 2024, Jio Financial Services established a subsidiary called Jio Leasing Services Ltd, an unrelated leasing services business. The subsidiary signed a $4.4 billion deal with another promoter-owned company,

Reliance Retail Reliance Retail is an Indian retail company and a subsidiary of Reliance Industries. Founded in 2006, it is the largest retailer in India in terms of revenue. Its retail outlets offer foods, groceries, apparel, footwear, toys, home improvement ...

for leasing routers.

References

External links

*{{url, www.jfs.in, Official website Financial services companies based in Mumbai Indian companies established in 2023 Companies listed on the Bombay Stock Exchange Companies listed on the National Stock Exchange of India Reliance Industries Investment management companies of India Online financial services companies of India Investment companies of India NIFTY 50 Asset management companies