Mukesh Ambani, the chairman of Reliance Industries Ltd, has announced the appointment of Isha Ambani, his daughter, and Rajiv Mehrishi, the former Comptroller and Auditor General (CAG), as directors on the board of the demerged financial services unit. This move comes as Reliance plans to separate its financial services undertaking into Reliance Strategic Investments Limited (RSIL) and list it as Jio Financial Services Limited (JFSL).
The financial arm of Reliance aims to provide lending services to consumers and merchants, with plans to expand into insurance, payments, digital broking, and asset management. Shareholders of Reliance will receive one share of the new company for each share held in the parent company.
The effective date of the demerger has been set as July 1, with July 20 designated as the record day for the allocation of shares in the new company. JFSL will complement Reliance's existing consumer businesses, which include India's largest wireless operator and a leading retail chain.
Isha Ambani has been appointed as a non-executive director, while Anshuman Thakur, an executive at Reliance, has also been appointed as a non-executive director. Rajiv Mehrishi, a former bureaucrat who served as home secretary and CAG, has been appointed as an independent director on RSIL for a five-year term. Sunil Mehta, CEO of the Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant with PwC experience, have also been appointed as independent directors.
The appointments are subject to the approval of RSIL members and the Reserve Bank of India, and will be effective upon receiving the RBI's approval. Hitesh Kumar Sethia, a seasoned financial services executive, has been appointed as the managing director and CEO of RSIL for a three-year term.
Hitesh Sethia brings over two decades of experience in the financial services sector, having held leadership roles at ICICI Bank across various departments, including credit, retail banking, corporate banking, and transaction banking. His expertise, coupled with a deep understanding of technology applications in financial services, makes him well-suited for the role.
The appointments reflect Reliance's strategic focus on its financial services arm and its commitment to expanding its presence in the sector. The company aims to leverage its strong consumer businesses and expertise in the Indian market to drive growth and create value for its shareholders.
Overall, the appointments of Isha Ambani, Rajiv Mehrishi, and other experienced professionals strengthen the leadership team of Reliance's demerged financial services unit, setting the stage for its successful entry into the market as Jio Financial Services Limited.
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