Mumbai: Reliance Industries Limited (RIL) on Friday said that it will demerge its financial services business and list it separately under Jio Financial Services Limited (JFSL).
''The Board of Directors of Reliance Industries Limited (RIL), at its meeting held today, approved a scheme of arrangement amongst RIL, Reliance Strategic Investments Limited (RSIL) and their respective shareholders and creditors in terms of which, RIL will demerge its financial services undertaking into RSIL, to be renamed Jio Financial Services Limited (JFSL),'' a statement from the company said.JFSL would be listed on the Indian stock exchanges.
RSIL is currently a wholly-owned subsidiary of RIL and is a RBI-registered non-deposit taking Systemically Important (ND-SI) Non-Banking Financial Company.
Through the scheme, JFSL will acquire liquid assets to provide adequate regulatory capital for lending to consumers, merchants, etc, and to incubate other financial services verticals such as insurance, payments, digital broking, asset management for at least the next 3 years of business operations. The regulatory licenses for the key businesses are in place, the statement said.
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, said, “JFS will be a truly transformational, customer centric and digital-first financial services enterprise offering simple, affordable, innovative and intuitive financial services products to all Indians. JFS will be a technology-led business, delivering financial products digitally by leveraging the nation-wide omni-channel presence of Reliance’s consumer businesses. JFS is uniquely positioned to capture multiple growth opportunities in financial services bringing millions of Indians into formal financial institutions.”(UNI)
