look news india
New Delhi, July 12 (HS). Industrialist Mukesh Ambani's financial sector company Jio Financial Services Limited will now be changed from a non-banking finance company (NBFC) to a core investment company (CIC). For this, the company has received approval from the Reserve Bank of India (RBI).
Jio Financial Services informed the stock exchange on Friday that the company has received approval from the Reserve Bank on July 11 to convert from a non-banking financial company to a core investment company. The company had applied to the RBI to convert from a non-banking financial company to a core investment company. The company had informed both the exchanges about this on November 21, 2023.
What is a Core Investment Company
Core Investment Company (CIC) is a specialized NBFC whose asset size is more than Rs 100 crore. According to RBI's definition, the asset size of a core investment company should be more than Rs 100 crore. Along with this, it has to keep at least 90 percent of its net assets as investments like equity shares, liquid shares i.e. bonds, debentures or loans in group companies. This structure allows the investment of necessary capital in subsidiary companies.
Jio Financial Services was a subsidiary of Mukesh Ambani's company Reliance Industries (RIL). This company was demerged from RIL on July 20, 2023. RBI had directed to convert Jio Financial Services into CIC while changing the shareholding pattern after the demerger.