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Jio Financial Services Shares of are in focus today. It also saw a gain of more than 1% during early trade. In a notice to the exchanges, the company has said that it has received approval from the Reserve Bank of India as a core investment company. The company is now approved as a core investment company instead of non-banking financial services (NBFC).
In November last year, Jio Financial Services received RBI's approval to convert the company from an NBFC to a core investment company. The company also informed the exchanges about this on November 21, 2023.
A special type of non-banking financial company (NBFC) is called a core investment company (CIC). The core asset size of such a company should be more than Rs. 100 crore. According to a circular issued by RBI on December 20, 2016, part of the work of a CIC is to acquire shares and securities subject to certain conditions. CICs are required to hold at least 90% of their net assets in the form of equity shares, preference shares, bonds, debentures, loans or debts in group companies. All CICs with an asset size of more than Rs. 100 crore must comply with RBI norms.
After the separation of Reliance Industries, Jio Financial Services had applied to RBI. So far this year, Jio Financial's shares have seen a gain of 50%. Let us tell you that the results of Reliance Industries will be announced next week i.e. on Friday (July 19).
