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JM Financial

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JM Financial Ltd.
Company typePublic
ISININE780C01023
IndustryFinancial services
Founded1973; 51 years ago (1973)
FounderNimesh Kampani
Headquarters,
Key people
Nimesh Kampani (Chairman)
Vishal Kampani (Vice chairman)
Atul Mehra (Managing Director)
Adi Patel (managing director)
ServicesInvestment banking
Mortgage lending
Investment management
Asset management
Mutual funds
Exchange-traded funds
RevenueIncrease37.63 billion (US$450 million) (31 March 2022)
Increase9.92 billion (US$120 million) (31 March 2022)
Total assetsIncrease258 billion (US$3.1 billion) (31 March 2022)
Total equityIncrease106 billion (US$1.3 billion) (31 March 2022)
Number of employees
Increase2,405 (31 March 2022)
Websitejmfl.com
Footnotes / references
[1][2]

JM Financial (JMFL) is an Indian financial services group headquartered in Mumbai and has branches across India.[3] It also has overseas branches in Ebene, Singapore, New Jersey and Dubai although almost all the group's business are domestic operations in India.[1][3]

History

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JM Financial was founded in 1973 by Mahendra Kampani and Nimesh Kampani as a spin-off from Jamnadas Morarjee Securities' investment banking arm[4] and was originally set up as a consultancy practice.[2][5] In 1986, it was incorporated as a private limited company to engage in the business of Stock-broking.[6]

In 1991, it listed on the Bombay Stock Exchange becoming a publicly listed company group[7] and in 2006 it held a secondary listing on the National Stock Exchange of India.[8] The group expanded into different businesses outside Stock-broking which include Asset management in 1994,[9] Private equity in 2006,[10] Real estate investment in 2007,[11] Distressed Credit in 2008[12] and Mortgage lending in 2017.[13]

In 1999, JM Financial and Morgan Stanley set up a Joint venture in India named JM Morgan Stanley.[14] In February 2007, Morgan Stanley announced the end of JM Morgan Stanley Joint Venture agreement.[14] It acquired JM Financial's 49% stake in the institutional brokerage business, and sold its 49% stake in the Investment banking business to JM Financial.[14]

Organization

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JM Financial has four main business segments: 1. Investment banking, Wealth management and Securities Business (IWS); 2. Mortgage lending; 3. Distressed Credit and 4. Asset Management.[1] The IWS and Mortgage lending segments make up the majority of the group's revenue.[1] Virtually almost all of the group's revenue is from only India.[1]

Although JM Financial is a publicly listed company, Kampani and his family still exhibit significance influence over it. According to shareholding disclosures, Kampani and his family hold over 15% of the group's shares.[15] This doesn't include indirect ownership via private entities etc.[15]

Rankings

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According to Mergermarket League tables, JM Financial is usually ranked in the top 10 firms for India deals by value with its 2021 rank being No. 4.[16]

Controversies

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Police investigation into Nimesh Kampani

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In 2009, JM Financial Founder, chairman and managing director, Nimesh Kampani was under police investigation for alleged involvement of defrauding depositors by Hyderabad-based Nagarjuna Finance Ltd.[17][18] Kampani was reported hiding in Dubai temporarily to avoid arrest.[19] In April 2009, the Supreme Court of India granted a stay on the arrest for Kampani.[18] After two years, Kampani returned to India but stepped back from daily operations.[19] In 2016, he formally resigned from his position as managing director and handed over control of JM Financial to his son, Vishal Kampani.[18][19]

SEC regulatory fine due to violation of registration rules

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In 2012, the U.S. Securities and Exchange Commission (SEC) fined JM Financial and three other Indian securities firms, US$1.8 million for violating registration rules.[20] The firms solicited and provided brokerage services to U.S. investors without being registered with the SEC as required under the federal securities laws.[20]

Insider trading settlement

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In 2020, Atul Saraogi, a vice president at JM Financial settled an alleged insider trading case with the Securities and Exchange Board of India (SEBI) by paying ₹1.5 million.[21] From 2013 to 2014, Saraogi engaged in off-market transactions of JM financial shares without obtaining approval from his employer.[21]

Ban on managing debt issues

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In June 2024, SEBI banned JM Financial from acting as a lead manager for public issues of debt securities until March 31, 2025, in a case of alleged irregularities in a public issue of non-convertible debentures (NCDs).[22]

References

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  1. ^ a b c d e "Annual Report 2022" (PDF). JM Financial.
  2. ^ a b "JMFINANCIL.IN | J.M. Financial Ltd. Company Profile & Executives - WSJ". www.wsj.com.
  3. ^ a b "Our Presence - Contact Top Investmant Banks in India - JM Financial". jmfl.com. Retrieved 21 March 2022.
  4. ^ Vijayaraghavan, Nandini (23 January 2023). Unfinished Business: Evolving Capitalism in the World's Largest Democracy. Penguin Random House India Private Limited. ISBN 978-93-5492-874-1.
  5. ^ The Company Check. "J M FINANCIAL AND INVESTMENT CONSULTANCY SERVICES PRIVATE LIMITED - Company Details | The Company Check". www.thecompanycheck.com. Retrieved 2 April 2022.
  6. ^ "JM Financial History | JM Financial Information". The Economic Times.
  7. ^ "JM Financial Listing Information". The Economic Times. Retrieved 2 April 2022.
  8. ^ "GATI & JM FINANCIAL to be listed in NSE from October 10, 2006". EquityBulls. 7 October 2006. Retrieved 24 March 2022.
  9. ^ "JM Financial Mutual Fund | JM Mutual Fund schemes & SIPs". www.fincash.com. Retrieved 21 March 2022.
  10. ^ "JM Financial launches India-focused private equity fund with Old Lane | Alternatives". AsianInvestor. 9 August 2006. Retrieved 21 March 2022.
  11. ^ Unnikrishnan, MV Ramsurya & Rajesh. "Realty bug bites JM Financial". The Economic Times. Retrieved 21 March 2022.
  12. ^ Mehta, Sangita. "Asset reconstruction business hots up as loan defaults rise". The Economic Times. Retrieved 21 March 2022.
  13. ^ "JM Financial gets NHB nod for home finance arm - Times of India". The Times of India. 24 November 2017. Retrieved 21 March 2022.
  14. ^ a b c "JM Financial, Morgan Stanley part ways". The Economic Times. Retrieved 21 March 2022.
  15. ^ a b "JM Financial Ltd. Shareholding Pattern: Latest Shareholding Snapshot of JM Financial Ltd". www.bloombergquint.com. Retrieved 29 March 2022.
  16. ^ "Global & Regional League Tables 2021" (PDF). 12 May 2022. Archived from the original (PDF) on 12 May 2022. Retrieved 25 September 2022.
  17. ^ "Why targeting Nimesh Kampani is a bad move". The Indian Express. 6 January 2009. Retrieved 21 March 2022.
  18. ^ a b c Doshi, P. R. Sanjai, Ankit (2 August 2016). "Nimesh Kampani to step down as J.M. Financial chairman and MD". mint. Retrieved 26 March 2022.{{cite web}}: CS1 maint: multiple names: authors list (link)
  19. ^ a b c PM, Indulal; Barman, Arijit. "India Inc's most trusted confidante Nimesh Kampani to step down as the chairman and MD of JM Financial". The Economic Times. Retrieved 21 March 2022.
  20. ^ a b "Ambit, Motilal Oswal among cos fined by SEC". Deccan Herald. 28 November 2012. Retrieved 29 March 2022.
  21. ^ a b "JM Financial's former VP settles insider trading case with Sebi". The Economic Times. Retrieved 29 March 2022.
  22. ^ Zachariah, Reena (20 June 2024). "Sebi confirms interim direction; bans JM Financial from managing debt public issues till Mar 2025". The Economic Times. ISSN 0013-0389. Retrieved 21 June 2024.
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