Jio Financial Services, a Reliance group firm, is seeking shareholders’ approval to raise the foreign investment limit up to 49 per cent.

Jio Financial said in a postal ballot notice to shareholders that it has also submitted an application to the RBI to convert into a core investment company (CIC) from an NBFC.

The company added that under the provisions of the Foreign Exchange Management (Non debt Instruments) Rules, 2019 (NDI Rules) and the foreign direct investment (FDI) policy of the government, foreign investment in a CIC is permitted under the government approval route.

Its board had on December 27, 2023, approved foreign investments (including foreign portfolio investments) of up to 49 per cent of its paid-up equity share capital effective upon its conversion into a CIC.

In terms of the NDI Rules, the 49 per cent investment limit requires shareholders’ approval by way of a special resolution. The cut-off date to determine shareholders who are eligible to vote on the proposal was fixed as May 17, a regulatory filing stated. The e-voting facility will be available from May 24 to June 22, it said.

Jio Financial also disclosed that it plans to promote, act as sponsor and set up companies to undertake various financial services business.