JM Financial (JMFL) is an Indian financial services group headquartered in

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...

and has branches across

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

. It also has overseas branches in Ebene,

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...

New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...

and

Dubai Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics of ...

although almost all the group's business are domestic operations in India.

History

JM Financial was founded in 1973 by

Nimesh Kampani Nimesh Kampani (born 30 September 1946) is an Indian investment banker. He is the chairman of the JM Financial group of companies. His personal wealth was valued at US$ 595 million in 2009 making him the 83rd richest in India, at that time. Th ...

and was originally set up as a consultancy practice. In 1986, it was incorporated as an private limited company to engage in the business of Stock-broking. In 1991, it listed on the

Bombay Stock Exchange BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange. It is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange in ...

becoming a

publicly listed company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in Over-the-counter (finance), over-the-counter markets. A public (publicly traded) comp ...

group and in 2006 it held a secondary listing on the

National Stock Exchange of India National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, Mah ...

. The group expanded into different businesses outside Stock-broking which include

Asset Management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

in 1994,

Private Equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

in 2006,

Real Estate investment Real estate investing involves the purchase, management and sale or rental of real estate for profit. Someone who actively or passively invests in real estate is called a real estate entrepreneur or a real estate investor. Some investors actively ...

in 2007, Distressed Credit in 2008 and Mortgage lending in 2017. In 1999, JM Financial and

Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...

set up a

Joint Venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...

in India named JM Morgan Stanley. In February 2007, Morgan Stanley announced the end of JM Morgan Stanley Joint Venture agreement. It acquired JM Financial's 49% stake in the institutional brokerage business, and sold its 49% stake in the

Investment banking Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...

business to JM Financial.

Organization

JM Financial has four main business segments: 1. Investment banking,

Wealth Management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high- ...

and Securities Business (IWS); 2. Mortgage lending; 3. Distressed Credit and 4. Asset Management. The IWS and Mortgage lending segments make up the majority of the group's revenue. Virtually almost all of the group's revenue is from only India. According to

Mergermarket Acuris is a financial news and data firm known for its products fixed income research provider Debtwire and Mergermarket, a specialist in M&A intelligence. It is owned by ION Investment Group, a financial software and data business which owns F ...

League tables, JM Financial is usually ranked in the top 10 firms for India deals by value with its 2021 rank being #4. 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. This doesn't include indirect ownership via private entities etc.

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 Hyderabad ( ; , ) is the capital and largest city of the Indian state of Telangana and the ''de jure'' capital of Andhra Pradesh. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part ...

-based Nagarjuna Finance Ltd. Kampani was reported hiding in Dubai temporarily to avoid arrest. In April 2009, the

Supreme Court of India The Supreme Court of India ( IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...

granted a stay on the arrest for Kampani. After two years, Kampani returned to India but stepped back from daily operations. In 2016, he formally resigned from his position as managing director and handed over control of JM Financial to his son, Vishal Kampani.

SEC regulatory fine due to violation of registration rules

In 2012, the

U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

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

Insider trading settlement

In 2020, Atul Saraogi, a vice president at JM Financial settled an alleged

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information ...

case with the

Securities and Exchange Board of India The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...

(SEBI) by paying ₹15 lakh. From 2013 to 2014, Saraogi engaged in off-market transactions of JM financial shares without obtaining approval from his employer.

References

External links

Official site
{{authority control Investment banks in India Indian companies established in 1973 Financial services companies of India Companies listed on the Bombay Stock Exchange Companies listed on the National Stock Exchange of India