JFSL gains after receiving RBI nod to convert into core investment company

Jio Financial Services (JFSL) rose 1.11% to Rs 351.90 after the company received an approval from Reserve Bank of India to convert into core investment company (CIC) from non-banking financial company (NBFC).

A CICs primary responsibility, according to the RBI circular of 20 December 2016, is to purchase shares and securities subject to specific restrictions. At least 90% of the CICs net assets must be invested in equity shares, bonds, debentures, preference shares, debt or loans made to group firms.

In November 2023, the company had submitted an application to RBI to convert its NBFC status into core investment company (CIC).

Jio Financial Services is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) and engaged in business of finance, trading in futures and options, trading / investments in shares and securities.

The NBFC reported a net profit of Rs 311 crore in Q4 FY24 as against a PAT of Rs 294 crore posted in Q3 FY24. The companys interest income stood at Rs 280 crore for the quarter. Its total income came in at Rs 495.79 crore and revenue at Rs 418 crore.

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