Jio Financial and U.S.-based BlackRock got in-principle approval from India's markets regulator to act as co-sponsors and set up a mutual fund business in the country, the Mukesh Ambani-led Reliance Group company said on Friday.

The firm said that it would act as co-sponsors with BlackRock and establish the proposed mutual fund after it received an in-principle approval from SEBI

The NBFC arm of Reliance Industries, Jio Financial, and BlackRock Advisors Singapore Pte. Ltd have come together to create a joint venture company named 'Jio BlackRock Investment Advisers Private Limited' for the purpose of carrying out investment advisory services.

SEBI has granted in-principle approval to Jio Financial Services and BlackRock to set up their proposed mutual fund.

Reliance Industries, under Mukesh Ambani, plans to enter India's mutual fund market through Jio Financial Services' joint venture with BlackRock. Leveraging expertise and vast consumer data, the venture seeks to capitalize on the growing investment habits of Indians and aims to expand the industry's distribution reach.

SEBI approves Jio Financial and BlackRock to set up mutual fund, aiming to provide innovative investment solutions in India.

Jio's entry in the MF space is expected to spruce up the competition in the industry which currently has over Rs 66 trillion in assets under management

The companies signed a second joint venture in April to set up a wealth management and broking business in the country

"The final approval for registration will be granted by SEBI subject to fulfillment by the Company and BlackRock of the requirements set out in the said letter," JFS said in an exchange filing.

Capital market regulator SEBI has granted in-principal approval to Mukesh Ambani's Jio Financial Services Limited and BlackRock Financial Management Inc (BlackRock) to act as co-sponsors and set up the proposed mutual fund.