BlackRock Advisors Singapore and Jio Financial Services Form Strategic Joint Venture in India

On September 6, 2024, BlackRock Advisors Singapore Pte. Ltd. and Jio Financial Services Ltd. announced the formation of a new joint venture, Jio BlackRock Investment Advisers Private Limited. This new entity aims to provide comprehensive investment advisory services in India, marking a significant step in the financial services landscape in the country. The announcement was made through a filing with the Bombay Stock Exchange (BSE) on September 8.

Strategic Investment and Regulatory Approvals

Jio Financial Services, a non-banking financial services (NBFC) arm of Mukesh Ambani’s conglomerate, disclosed that it would make an initial investment of ₹3 crore. This investment will be used to subscribe to 30 lakh shares of the new venture, each with a face value of ₹10. The joint venture, pending regulatory approvals, will focus on delivering primary investment advisory services in India.

The non-banking lender also recently received a Certificate of Incorporation from the Ministry of Corporate Affairs (MCA) on September 7, 2024. This formalizes the establishment of the joint venture and allows it to commence its operations once it secures the necessary regulatory clearances.

Corporate Developments and Financial Performance

In recent corporate updates, Jio Financial Services appointed Deloitte Haskins & Sells as its statutory auditor, replacing C K S P and Co LLP, whose audit tenure concluded in 2024. This change in auditors aligns with the company’s strategic move to enhance its financial oversight and transparency.

Additionally, on August 24, 2024, the company received approval from the Department of Economic Affairs, Ministry of Finance, to increase the limits of foreign investment, including Foreign Portfolio Investments (FPIs), to 49% of its paid-up equity share capital. This move is expected to attract more foreign capital into the company and bolster its financial standing.

Despite these positive developments, Jio Financial Services reported a 6% decline in net profit for the April to June quarter of the financial year 2024-25. The company’s net profit fell to ₹312.63 crore from ₹332 crore during the same period the previous year, reflecting broader challenges in the financial services sector.

Future Outlook

The launch of Jio BlackRock Investment Advisers Private Limited is poised to enhance the investment advisory landscape in India by leveraging the expertise of both BlackRock Advisors and Jio Financial Services. With a focus on regulatory compliance and strategic investments, the joint venture is expected to play a crucial role in shaping the future of investment advisory services in the region.