JM Financial Ltd. (JMFL) is an Indian financial services group headquartered in Mumbai and has branches across India.[1] It also has overseas branches in Ebene, Singapore, New Jersey and Dubai although almost all the group's business are domestic operations in India.[2][1]
History
JM Financial was founded in 1973 by Mahendra Kampani and Nimesh Kampani as a spin-off from Jamnadas Morarjee Securities' investment banking arm[3] and was originally set up as a consultancy practice.[4][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
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.[2] The IWS and Mortgage lending segments make up the majority of the group's revenue.[2] Almost all of the group's revenue is from only India.[2]
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
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
Police investigation into Nimesh Kampani
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
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
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
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
- ↑ 1.0 1.1 Our Presence. jmfl.com. Retrieved 21 March 2022.
- ↑ 2.0 2.1 2.2 2.3 Cite error: Invalid
<ref>tag; no text was provided for refs namedAR22 - ↑ Unfinished Business: Evolving Capitalism in the World's Largest Democracy{{#if:Vijayaraghavan|, Vijayaraghavan}. Penguin Random House India Private Limited(23 January 2023). ISBN 978-93-5492-874-1
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedWSJ - ↑ J M FINANCIAL AND INVESTMENT CONSULTANCY SERVICES PRIVATE LIMITED - Company Details | The Company Check. www.thecompanycheck.com. Retrieved 2 April 2022.
- ↑ JM Financial History | JM Financial Information. The Economic Times.
- ↑ JM Financial Listing Information. The Economic Times. Retrieved 2 April 2022.
- ↑ GATI & JM FINANCIAL to be listed in NSE from October 10, 2006. EquityBulls(7 October 2006). Retrieved 24 March 2022.
- ↑ JM Financial Mutual Fund | JM Mutual Fund schemes & SIPs. www.fincash.com. Retrieved 21 March 2022.
- ↑ JM Financial launches India-focused private equity fund with Old Lane | Alternatives. AsianInvestor(9 August 2006). Retrieved 21 March 2022.
- ↑ Realty bug bites JM Financial. The Economic Times. Retrieved 21 March 2022.
- ↑ Asset reconstruction business hots up as loan defaults rise. The Economic Times. Retrieved 21 March 2022.
- ↑ JM Financial gets NHB nod for home finance arm - Times of India. The Times of India(24 November 2017). Retrieved 21 March 2022.
- ↑ 14.0 14.1 14.2 JM Financial, Morgan Stanley part ways. The Economic Times. Retrieved 21 March 2022.
- ↑ 15.0 15.1 JM Financial Ltd. Shareholding Pattern: Latest Shareholding Snapshot of JM Financial Ltd.. www.bloombergquint.com. Retrieved 29 March 2022.
- ↑ Global & Regional League Tables 2021(12 May 2022). Retrieved 25 September 2022.
- ↑ Why targeting Nimesh Kampani is a bad move. The Indian Express(6 January 2009). Retrieved 21 March 2022.
- ↑ 18.0 18.1 18.2 Nimesh Kampani to step down as J.M. Financial chairman and MD, Doshi, P. R. Sanjai, Ankit. mint(2 August 2016). Retrieved 26 March 2022.
- ↑ 19.0 19.1 19.2 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.
- ↑ 20.0 20.1 Ambit, Motilal Oswal among cos fined by SEC. Deccan Herald(28 November 2012). Retrieved 29 March 2022.
- ↑ 21.0 21.1 JM Financial's former VP settles insider trading case with Sebi. The Economic Times. Retrieved 29 March 2022.
- ↑ Sebi confirms interim direction; bans JM Financial from managing debt public issues till Mar 2025. The Economic Times(2024-06-20). Retrieved 2024-06-21.