The
share price of Jio Financial Services will be in focus from Friday as the
company received the necessary permission to be converted into a "Core
Investment Company from an " Non- Banking Financial Services
Company"(NBFC).
Jio Financial Services
in its filling to the exchanges on 21st, 2023 disclosed that the company had
applied to the RBI to covert the company from NBFC to Core Investment
Company.
Jio Financial Services
had applied to the RBI post the demerger of its financial business from its
parent company Reliance Industries who has led the formation of this
company.
What does it mean by a Core Investment
Company?
As per the RBI
circular on 20th December, 2016 a Core Investment Company (CIC) is a
specialized non- banking financial company(NBFC), whose main function should be
the acquisition of shares and securities with certain fixed regulations. The
asset size should be greater than Rs.100 crore. The CIC should hold not less
than 90% of its net assets in the form of investment in equities, preference
shares, debentures, debts or loans in different group of companies.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
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