Jio finance share price spikes 5% 

Today, Jio Financial Services experienced a 5% surge, reaching ₹371.95 per share. This uptick followed the company’s announcement of a partnership with BlackRock, focusing on wealth management endeavors. Their collaboration entails the formation of a wealth management entity, followed by the establishment of a brokerage firm within India.

Jio Financial Services is a financial company that doesn’t take deposits or operate as a bank. They focus on retail lending, merchant lending, payments bank operations, payment solutions, and insurance broking. This information was reported by Reuters.

Their plan is to get into wealth management, starting with setting up a wealth management company. Later on, they’ll also open a brokerage firm in India.

Their plan is to get into wealth management, starting with setting up a wealth management company. Later on, they’ll also open a brokerage firm in India.

The company said in a legal document that this partnership makes their bond with Blackrock, Inc. even stronger. They had already announced a 50:50 joint venture with Blackrock on July 26, 2023. Their goal is to change India’s asset management industry by providing digital services first and making it easier for people in India to invest.

The company also told investors that they’ll need to get approval from regulators and meet legal requirements before they can start their wealth management and broking business.

In India, the broking and wealth management sector is growing a lot because more and more people are opening demat accounts. According to a report from Reuters, which cites Jefferies, wealth managers in India look after about $1–1.2 trillion in financial assets owned by rich people in the country.

Experts think the future looks good for the wealth management industry. They expect there to be a lot more rich people and super-rich people in India. In the last five years, the number of people earning over Rs. 1 crore has gone up by 15%, and they think it will keep growing to about 3.40 lakhs in the next five years. This growth will help the sector get bigger.

Back in July 2023, Jio Financial Services and BlackRock said they were going to team up and put $150 million each into a joint venture to start working in India’s asset management sector. Jio Financial Services sent its application to the Securities and Exchange Board of India (Sebi) on October 19. As of December 31, 2023, Sebi is still working on their application.

A report from December 31, 2023, from Sebi talks about the status of mutual fund approvals. It says that Jio Financial Services and BlackRock Financial Management are among the companies waiting for approval to start mutual funds.

Jio Financial Services doesn’t take deposits or work like a regular bank. They focus on lending money to regular people and businesses, handling payments, and offering insurance. They aim to help people in cities, towns, and villages all across India with their financial needs.

They run their money operations through some other companies they own, like Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL). They also have a joint venture called Jio Payments Bank Limited (JPBL).

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