Shares of Jio Financial Services Ltd (JFS) are anticipated to witness heightened market activity as the Securities and Exchange Board of India (Sebi) progresses in its review of mutual fund applications. The latest Sebi status report reveals that the application jointly filed by JFS and BlackRock Financial Management on October 19, 2023, is presently under consideration for in-principle approval.

While Angel One Ltd has already secured in-principle approval, JFS awaits a final registration decision, as indicated by the regulatory report. Despite a 2% rise in the last month, Jio Financial Services shares have experienced a 5.7% dip in the past six months. Following its demerger from Reliance Industries Ltd, JFS formed a strategic 50:50 joint venture with BlackRock in July last year, injecting $150 million each into the asset management business in India.

Recent financial reports indicate a promising outlook for JFS, with a doubled profit of Rs 668 crore in the September quarter on a sequential basis. The consolidation of its position since being carved out from Reliance Industries is evident in the surge from Rs 332 crore in the June quarter. In a proactive approach to financial services, JFS aims to revolutionize and modernize operations with a digital-first strategy, utilizing its robust capital base to fund growth, meet regulatory requirements, and establish contingencies.

The company's commitment to expansion is reflected in the impressive 48% quarter-on-quarter revenue growth, reaching Rs 608 crore, further buoyed by a dividend income of Rs 217 crore. As the Sebi applicants' list undergoes regular updates, stakeholders are closely monitoring the developments in JFS's regulatory journey, anticipating a significant impact on its market trajectory.