On Friday 21 October, Reliance Industries Limited (RIL) announced that it would soon demerge its financial services business to form a new company Jio financial services limited (JFSL).
Reliance Strategic Investments Limited (RSIL) is a wholly-owned subsidiary of Reliance Industries Limited (RIL) which currently carries out its business of providing loans to merchants and consumers.
Reliance Industries Limited (RIL) holding a stake in Reliance Industrial Investments and Holdings Limited (RIIHL) will be transferred to Jio Financial Services Limited (JFSL) as a part of RIL’s financial services venture. Shareholders of Reliance Industries Limited (RIL) will be given 1 share of Jio Financial Services Limited (JFSL) on each of their shares, i.e. the share entitlement ratio will be 1:1, the company said.
The company further said that they will also launch several products such as insurance, payments, digital broking and asset management services. This demerger is subject to regulatory approval from the Securities and Exchange Board of India (SEBI), Exchanges, Reserve Bank of India (RBI) etc.