Here’s How Reliance sets its sights on the insurance industry
Reliance Industries is considering entering the insurance market. Sources close to the company say it is in the final stages of filing its application to the insurance regulator for life and general insurance businesses, just days after announcing the demerger of its financial services business, which will be renamed Jio Financial Services Limited (JFSL). “Two companies are being formed to pursue each of these businesses, and they will seek separate licenses,”. The insurance verticals will each have a capital base of Rs 1,000 crore. The minimum paid-up capital for life and general insurance businesses is 100 crore, according to IRDAI regulations. An e-mail sent to RIL went unanswered until the end of the day. Reliance Industries Limited’s board of directors approved the demerger of its financial services venture to Reliance Strategic Investments Limited on October 21. (RSIL). Following the demerger, RSIL will be renamed Jio Financial Services Limited and will be listed on the stock exchanges. RIL shareholders will receive one equity share in JFSL.
RSIL is a non-deposit-taking, non-banking financial services company that is registered with the RBI (NBFC). JFSL will concentrate on expanding its lending operations. According to a press release issued by RIL on October 21, the company will also engage in other financial services verticals such as insurance, payments, digital broking, and asset management.