 | |
| Company type | Public |
|---|---|
| ISIN | INE780C01023 |
| Industry | Financial services |
| Founded | 1973; 52 years ago (1973) |
| Founder | Nimesh Kampani |
| Headquarters | , India |
Key people |
|
| Services | Investment banking Mortgage lending Investment management Asset management Mutual funds Exchange-traded funds |
| Revenue |  ₹37.63 billion (US$450 million) (31 March 2022) |
| ₹9.92 billion (US$120 million) (31 March 2022) | |
| Total assets | ₹258 billion (US$3.1 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 Ltd. (JMFL) is an Indian financial services group headquartered inMumbai and has branches acrossIndia.[3] It also has overseas branches inEbene, Singapore, New Jersey andDubai although almost all the group's business are domestic operations in India.[1][3]
JM Financial was founded in 1973 by Mahendra Kampani andNimesh 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 ofStock-broking.[6]
In 1991, it listed on theBombay Stock Exchange becoming apublicly listed company group[7] and in 2006 it held asecondary listing on theNational Stock Exchange of India.[8] The group expanded into different businesses outside Stock-broking which includeAsset management in 1994,[9]Private equity in 2006,[10]Real estate investment in 2007,[11]Distressed Credit in 2008[12] andMortgage lending in 2017.[13]
In 1999, JM Financial andMorgan Stanley set up aJoint 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 theInvestment 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 toMergermarketLeague 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 byHyderabad-based Nagarjuna Finance Ltd.[17][18] Kampani was reported hiding in Dubai temporarily to avoid arrest.[19] In April 2009, theSupreme 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, theU.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 allegedinsider trading case with theSecurities 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]
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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