Mumbai, Sep 30 (IANS): Reliance Capital Friday said it hoped to conclude shortly a stake sale in its life insurance arm to Japan's Nippon Life for $680 million following a nod from the central bank, valuing the enterprise at $2.6 billion.

"The transaction is expected to close shortly," the company said in a regulatory filing with the Bombay Stock Exchange, which was secured less than a month after a similar nod from the Insurance Development and Regulatory Authority of India.

"Nippon's valuable experience of over 122 years will now help strengthen Reliance Life Insurance's position as a leading and world-class insurance company in India," said Sam Ghosh, chief executive of Reliance Capital.

Earlier this month, Reliance Capital, part of the Anil Ambani-led Reliance Group, had also signed a pact with Nippon Life Insurance to pursue partnerships beyond the insurance space to provide a host of financial services in India.

Nippon Life, company officials said, was now evaluating opportunities - including strategic partnership - across all Reliance Capital-promoted financial businesses including asset management.

Reliance Capital Asset Management is the largest asset management company in India and manages over Rs.104,136 crore ($23 billion) across mutual funds, pension funds, managed accounts and hedge funds and has over 7 million investors.

Reliance Capital is among the top four private financial services firm with interests in areas such as mutual funds, insurance, commercial finance, broking, investment banking, private equity, wealth management and financial products distribution.