Tokyo : As Prime Minister Narendra Modi sought greater investments from Japan, financial sector giant Nippon Life said it will partner Anil Ambani-led Reliance Group for a proposed ‘Reliance Bank’ and launched two India-focussed funds for Japanese investors.        The funds would direct investments by Japanese retail investors into Indian equity and bond markets, Nippon and Reliance Life said in a joint statement, while welcoming Modi on his first official visit to Japan as Prime Minister.

Nippon Life said it is committed to a partnership with the Indian business conglomerate for setting up ‘Reliance Bank’ under an appropriate category of licences to be issued by the Reserve Bank of India.

The announcements coincided with Modi’s first official visit to Japan as Prime Minister, during which he invited Japanese investments into India and said that businessmen from the two countries can give a direction to world economy.

“The aim …is… to offer attractive investment opportunities to the Japanese individual investors, as more attention is paid to the Indian financial products and the Indian equity market recorded the highest index based on the expectation to the economic reforms with the formation of Prime Minister (Narendra) Modi’s Cabinet,” the two companies said in a joint release.

Among the two new mutual funds announced for Japanese retail investors, India Equity Selection Fund would allow Japanese investors to “directly invest in Indian companies with long term potential”.

Already the Japanese insurer has a 26-percent stake in Reliance Capital Asset Management company acquired for $290 million in 2012 and Reliance Life Insurance Company for $680 million invested in 2011.

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