Reliance Capital, a part of Anil Ambani led Reliance Group, today announced completion of transfer of its commercial finance division, Reliance Commercial Finance (RCFL), into a separate wholly owned subsidiary.

The company had announced the transfer of its Commercial Finance division into a separate subsidiary in February 25, 2016, subject to requisite Regulatory, High Court and Reliance Capital shareholders' approvals, which have since been received.

Reliance Capital shareholders had approved the transfer by an overwhelming majority of 99.99 per cent votes in favour of the Scheme of Arrangement at the court-convened equity shareholders meeting held on September 10, 2016.

RCFL is amongst the leading SME lenders in the Indian non-banking finance space with a focus on asset backed lending and productive asset creation. The Commercial Finance division has an aggregate asset under management (including securitized portfolio) portfolio of Rs 161.91 billion (USD 2.4 billion) as of December 31, 2016.

"Reliance Commercial Finance now stands as a fully owned subsidiary of Reliance Capital. This completes our restructuring process as Reliance Capital moves to become a Core Investment Company from next fiscal. This transfer will align RCFL with the overall operating structure of Reliance Capital wherein all operating businesses are held either as wholly owned or majority owned subsidiaries. The proposal will enhance management focus and provide flexibility to the Company to unlock value through stake sale," said Anmol Ambani, ED, Reliance Capital.

Reliance Nippon Life Insurance and Reliance Nippon Life Asset Management, both subsidiaries of Reliance Capital, already have a strategic partner-Nippon Life Insurance-with 49 per cent stake in each business.

The transfer will also enhance employee engagement and retention through ability to grant ESOPs in the business. The transfer, pursuant to the Scheme of Arrangement, will be effective from April 1, 2016.

Reliance Capital would be applying to the RBI for registering itself as a Core Investment Company (CIC) and expects to become a CIC soon, subject to necessary approvals.

Shares of the company declined Rs 11.05, or 1.81%, to settle at Rs 600.35. The total volume of shares traded was 400,758 at the BSE (Friday).