JM Financial

Last updated

JM Financial Ltd.
Company type Public
ISIN INE780C01023
Industry Financial services
Founded1973;51 years ago (1973)
Founder Nimesh Kampani
Headquarters
Mumbai
,
India
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
RevenueIncrease2.svg₹37.63 billion (US$450 million) (31 March 2022)
Increase2.svg₹9.92 billion (US$120 million) (31 March 2022)
Total assets Increase2.svg₹258 billion (US$3.1 billion) (31 March 2022)
Total equity Increase2.svg₹106 billion (US$1.3 billion) (31 March 2022)
Number of employees
Increase2.svg2,405 (31 March 2022)
Website jmfl.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]

Contents

History

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

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

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]

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References

  1. 1 2 3 4 5 "Annual Report 2022" (PDF). JM Financial.
  2. 1 2 "JMFINANCIL.IN | J.M. Financial Ltd. Company Profile & Executives - WSJ". www.wsj.com.
  3. 1 2 "Our Presence". 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. 1 2 3 "JM Financial, Morgan Stanley part ways". The Economic Times. Retrieved 21 March 2022.
  15. 1 2 "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. 1 2 3 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. 1 2 3 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. 1 2 "Ambit, Motilal Oswal among cos fined by SEC". Deccan Herald. 28 November 2012. Retrieved 29 March 2022.
  21. 1 2 "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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