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$470 million) (31 March 2022) |
₹9.92 billion (US$120 million) (31 March 2022) | |
Total assets | ₹258 billion (US$3.2 billion) (31 March 2022) |
Total equity | ₹106 billion (US$1.3 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]
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]
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]
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]
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]
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]
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]
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