Jio Financial Services seeks RBI approval to convert from NBFC to CIC

Jio Financial Services, the demerged entity of energy-to-telecom conglomerate Reliance Industries Ltd (RIL), has asked for the Reserve Bank of India’s (RBI) approval for conversion into a core investment company (CIC).

Jio Financial on November 21 announced that it has submitted an application with the RBI for converting to a CIC from a non-banking financial company (NBFC) after a regulatory mandate.

CICs are NBFCs that invest in the equity shares, preference shares or convertible bonds or loans of their group companies.

They hold control over their group companies and do not trade in their shares except for the purpose of dilution or disinvestment.

CICs are passive holding companies and do not engage in any other financial activity.