JM Financial
 | |
| Company type | Public |
|---|---|
| ISIN | INE780C01023 |
| Industry | Financial services |
| Founded | 1973 |
| Founder | Nimesh Kampani |
| Headquarters | , |
Key people | Nimesh Kampani (Chairman) Vishal Kampani (Vice chairman) Atul Mehra (Managing Director) Adi Patel (managing director) |
| Services | Investment banking Mortgage lending Investment management Asset management Mutual funds Exchange-traded funds |
| Revenue |  ₹37.63 billion (US$440 million) (31 March 2022) |
| ₹9.92 billion (US$120 million) (31 March 2022) | |
| Total assets | ₹258 billion (US$3.0 billion) (31 March 2022) |
| Total equity | ₹106 billion (US$1.2 billion) (31 March 2022) |
Number of employees | 2,405 (31 March 2022) |
| Website | jmfl |
| 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
[edit]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
[edit]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
[edit]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
[edit]Police investigation into Nimesh Kampani
[edit]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
[edit]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
[edit]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
[edit]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
[edit]- ^ a b c d e "Annual Report 2022" (PDF). JM Financial.
- ^ a b "JMFINANCIL.IN | J.M. Financial Ltd. Company Profile & Executives - WSJ". www.wsj.com.
- ^ a b "Our Presence". jmfl.com. Retrieved 21 March 2022.
- ^ 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.
- ^ The Company Check. "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.
- ^ Unnikrishnan, MV Ramsurya & Rajesh. "Realty bug bites JM Financial". The Economic Times. Retrieved 21 March 2022.
- ^ Mehta, Sangita. "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.
- ^ a b c "JM Financial, Morgan Stanley part ways". The Economic Times. Retrieved 21 March 2022.
- ^ a b "JM Financial Ltd. Shareholding Pattern: Latest Shareholding Snapshot of JM Financial Ltd". www.bloombergquint.com. Retrieved 29 March 2022.
- ^ "Global & Regional League Tables 2021" (PDF). 12 May 2022. Archived from the original (PDF) on 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.
- ^ 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) - ^ 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.
- ^ a b "Ambit, Motilal Oswal among cos fined by SEC". Deccan Herald. 28 November 2012. Retrieved 29 March 2022.
- ^ a b "JM Financial's former VP settles insider trading case with Sebi". The Economic Times. Retrieved 29 March 2022.
- ^ 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.
