Reliance Industries Ltd has convened a meeting of its shareholders and creditors to seek their permission to demerge its financial services business.
In October last year, RIL said it would hive off its financial services operations and list them separately under Jio Financial Services.
“The board of directors of RIL approved a scheme of arrangement amongst RIL, Reliance Strategic Investments Limited (RSIL) and their respective shareholders and creditors in terms of which, RIL will demerge its financial services undertaking into RSIL, to be renamed Jio Financial Services Limited (JFSL),’’ RIL had said.
The oil-to-telecom conglomerate approached the Mumbai bench of the National Company Law Tribunal (NCLT) to secure its approval of the plan.
The NCLT on Monday directed RIL to call the meetings of secured creditors, unsecured creditors and its equity shareholders.
In a regulatory filing, RIL said the meeting will be held through video conferencing on May 2 — secured creditors to meet at 10:45am, unsecured creditors at 11.45 am and shareholders, 2pm.
Reliance said the demerger of the financial services business will lead to its further growth and expansion. Financial services also require a differentiated strategy.
The nature and competition involved in the financial services business are distinct from the other businesses even as it is capable of attracting a different set of investors, strategic partners, lenders and other stakeholders.
