Mukesh Ambani’s daughter Isha and former CAG Rajiv Mehrishi have been appointed directors on the board of Reliance Industries Ltd’s spin-off financial services division, the company said on July 8.
Mukesh Ambani’s daughter Isha and former CAG Rajiv Mehrishi have been appointed directors on the board of Reliance Industries Ltd’s spin-off financial services division, the company said on July 8.
Earlier, Reliance announced its plans to split its financial services business into Reliance Strategic Investments Limited (RSIL) and rename it Jio Financial Services Limited (JFSL) and list it publicly.
Earlier, Reliance announced its plans to split its financial services business into Reliance Strategic Investments Limited (RSIL) and rename it Jio Financial Services Limited (JFSL) and list it publicly.
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Based on proprietary data analytics, Reliance’s finance arm will lend to consumers and merchants, eventually expanding into insurance, payments, digital intermediation and wealth management.
According to the details, each Reliance shareholder will receive one share in the new company for each share they hold in the parent company.
The effective date of the demerger has been set as July 1, and the company has set July 20 as the record date for the allotment of shares in the new company, according to the company’s stock exchange filing.
JFSL will complement Reliance’s consumer businesses, which would include India’s largest mobile operator with approximately 428 million users and a leading retail chain with over 17,000 stores.
“In accordance with the terms of the (Merger) Plan, Reliance Strategic Investments Limited (RSIL) will issue and allocate a fully paid share interest in RSIL with a par value of ₹10 for each fully paid share of ₹10 per share to the shareholders of the company whose names are on record in the register of shareholders and/or in the records of the custodian as of the record date,” the company said in a stock exchange release.
At a July 7 meeting, the new company’s board of directors approved Isha Mukesh Ambani as non-executive director, while also appointing Anshuman Thakur, managing director of Reliance, as non-executive director.
It said former bureaucrat Rajiv Mehrishi, who served as both interior minister and CAG, had been appointed RSIL’s independent director for a five-year term. Sunil Mehta, Chief Executive Officer of the Indian Banks’ Association, and Bimal Manu Tanna, a chartered accountant who has worked at PwC, have been appointed independent directors.
“The appointment of directors is subject to the approval of the members of RSIL and the Reserve Bank of India and will be effective from the date of receipt of the Reserve Bank of India’s approval,” the filing reads.
Banker Hitesh Kumar Sethia has been appointed Managing Director and Chief Executive Officer of RSIL for a three-year term.
“Hitesh Sethia is a financial services executive with over two decades of experience in Europe, Asia (India and Greater China) and North America. He has spent most of his career at ICICI Bank gaining functional experience and holding managerial positions in various departments such as credit, retail, corporate and transaction banking, coupled with an understanding of technology applications in the financial services space.” says the file with a brief profile of the new CEO.
“Incurable gamer. Infuriatingly humble coffee specialist. Professional music advocate.”
