Tag : FSL

New Delhi (The Hawk): At its meeting on Friday, Reliance Industries Limited's (RIL) Board of Directors agreed a scheme of arrangement between RIL, Reliance Strategic Investments Limited (RSIL), and their respective shareholders and creditors, under which RIL will demerge its financial services enterprise into RSIL (to be renamed Jio Financial Services Limited or JFSL). JFSL will be traded on Indian stock exchanges. RSIL is a wholly-owned subsidiary of RIL and a non-deposit taking systemically important (ND-SI) non-banking financial firm registered with the RBI (NBFC). According to the scheme, RIL shareholders will get one equity share of JFSL with a face value of Rs 10 in exchange for one fully paid-up equity share of Rs 10 in RIL. Based on the recommendations of the independent valuer and merchant bankers, the Board authorised the entitlement ratio. RIL's interest in Reliance Industrial Investments and Holdings Limited (RIIHL), which is part of RIL's financial services venture, would be transferred to JFSL. Through its holdings in Petroleum Trust and Reliance Services and Holdings Limited, RIIHL is the ultimate beneficiary of 6.1% of RIL shares. Furthermore, JFSL will acquire liquid assets to: a) provide adequate regulatory capital for lending to consumers, merchants, and others; and b) incubate other financial services verticals such as insurance, payments, digital broking, and asset management for at least the next three years of business operations. The key enterprises have regulatory licences in place. The Indian financial services sector is poised to undergo a digital transition, thanks to secular growth drivers. The sector represents a vast, underserved, and expanding addressable market, particularly for retail and small- ...