JM Financial

JM Financial was founded in 1973 by Mahendra Kampani and Nimesh Kampani as a spin-off from Jamnadas Morarjee Securities' investment banking arm{{Cite book |last=Vijayaraghavan |first=Nandini |url=https://books.google.com/books?id=m-2nEAAAQBAJ&dq=JM+financial&pg=PT29 |title=Unfinished Business: Evolving Capitalism in the World's Largest Democracy |date=23 January 2023 |publisher=Penguin Random House India Private Limited |isbn=978-93-5492-874-1 |language=en}} and was originally set up as a consultancy practice.{{Cite web |author=The Company Check |title=J M FINANCIAL AND INVESTMENT CONSULTANCY SERVICES PRIVATE LIMITED - Company Details {{!}} The Company Check |url=https://www.thecompanycheck.com/company/j-m-financial-and-investment-consultancy-services-private-limited/U67120MH1973PTC016844 |access-date=2 April 2022 |website=www.thecompanycheck.com |language=en-IN}} In 1986, it was incorporated as a private limited company to engage in the business of Stock-broking.{{cite web |title=JM Financial History {{!}} JM Financial Information |url=https://economictimes.indiatimes.com/jm-financial-ltd/infocompanyhistory/companyid-12633.cms |website=The Economic Times |language=en}}

In 1991, it listed on the Bombay Stock Exchange becoming a publicly listed company group{{Cite web |title=JM Financial Listing Information |url=https://economictimes.indiatimes.com/jm-financial-ltd/infocompanylisting/companyid-12633.cms |access-date=2 April 2022 |website=The Economic Times}} and in 2006 it held a secondary listing on the National Stock Exchange of India.{{Cite web |date=7 October 2006 |title=GATI & JM FINANCIAL to be listed in NSE from October 10, 2006 |url=https://www.equitybulls.com/category.php?page=0&id=2564 |access-date=24 March 2022 |website=EquityBulls}} The group expanded into different businesses outside Stock-broking which include Asset management in 1994,{{Cite web |title=JM Financial Mutual Fund {{!}} JM Mutual Fund schemes & SIPs |url=https://www.fincash.com/l/jm-financial-mutual-fund |access-date=21 March 2022 |website=www.fincash.com |language=en}} Private equity in 2006,{{Cite web |title=JM Financial launches India-focused private equity fund with Old Lane {{!}} Alternatives |url=https://www.asianinvestor.net/article/jm-financial-launches-india-focused-private-equity-fund-with-old-lane/57930 |access-date=21 March 2022 |website=AsianInvestor|date=9 August 2006 }} Real estate investment in 2007,{{Cite news |last=Unnikrishnan |first=MV Ramsurya & Rajesh |title=Realty bug bites JM Financial |work=The Economic Times |url=https://economictimes.indiatimes.com/realty-trends/realty-bug-bites-jm-financial/articleshow/1895140.cms |access-date=21 March 2022}} Distressed Credit in 2008{{Cite news |last=Mehta |first=Sangita |title=Asset reconstruction business hots up as loan defaults rise |work=The Economic Times |url=https://economictimes.indiatimes.com/industry/banking/finance/asset-reconstruction-business-hots-up-as-loan-defaults-rise/articleshow/3537826.cms |access-date=21 March 2022}} and Mortgage lending in 2017.{{Cite web |last3=Ist |date=24 November 2017 |title=JM Financial gets NHB nod for home finance arm - Times of India |url=https://timesofindia.indiatimes.com/business/india-business/jm-financial-gets-nhb-nod-for-home-finance-arm/articleshow/61783244.cms |access-date=21 March 2022 |website=The Times of India |language=en}}

In 1999, JM Financial and Morgan Stanley set up a Joint venture in India named JM Morgan Stanley.{{Cite news |title=JM Financial, Morgan Stanley part ways |work=The Economic Times |url=https://economictimes.indiatimes.com/the-week-that-was/jm-financial-morgan-stanley-part-ways/articleshow/1676195.cms |access-date=21 March 2022}} 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 business to JM Financial.

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. 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.

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.{{Cite web |title=JM Financial Ltd. Shareholding Pattern: Latest Shareholding Snapshot of JM Financial Ltd. |url=https://www.bloombergquint.com/stock/187323/jm-financial-ltd/shareholding-snapshot |access-date=29 March 2022 |website=www.bloombergquint.com}} This doesn't include indirect ownership via private entities etc.

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.{{Cite web |date=12 May 2022 |title=Global & Regional League Tables 2021 |url=http://www.mergermarket.com/pdf/MergermarketFinancialLeagueTableReport.Q42021.pdf |archive-url=https://web.archive.org/web/20220512084505/http://www.mergermarket.com/pdf/MergermarketFinancialLeagueTableReport.Q42021.pdf |archive-date=12 May 2022 |access-date=25 September 2022}}

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.{{Cite web |date=6 January 2009 |title=Why targeting Nimesh Kampani is a bad move |url=https://indianexpress.com/article/news-archive/web/why-targeting-nimesh-kampani-is-a-bad-move/ |access-date=21 March 2022 |website=The Indian Express |language=en}}{{Cite web |last=Doshi |first=P. R. Sanjai, Ankit |date=2 August 2016 |title=Nimesh Kampani to step down as J.M. Financial chairman and MD |url=https://www.livemint.com/Companies/D4MT6nHYOeMMTkSS9I8BCP/Nimesh-Kampani-to-step-down-as-CMD-JM-Financial.html |access-date=26 March 2022 |website=mint |language=en}} Kampani was reported hiding in Dubai temporarily to avoid arrest.{{Cite news |last1=PM |first1=Indulal |last2=Barman |first2=Arijit |title=India Inc's most trusted confidante Nimesh Kampani to step down as the chairman and MD of JM Financial |work=The Economic Times |url=https://economictimes.indiatimes.com/news/company/corporate-trends/india-incs-most-trusted-confidante-nimesh-kampani-to-step-down-as-the-chairman-and-md-of-jm-financial/articleshow/53514991.cms? |access-date=21 March 2022}} In April 2009, the Supreme Court of India 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.

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.{{Cite web |date=28 November 2012 |title=Ambit, Motilal Oswal among cos fined by SEC |url=https://www.deccanherald.com/content/295069/ambit-motilal-oswal-among-cos.html |access-date=29 March 2022 |website=Deccan Herald |language=en}} The firms solicited and provided brokerage services to U.S. investors without being registered with the SEC as required under the federal securities laws.

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.{{Cite news |title=JM Financial's former VP settles insider trading case with Sebi |work=The Economic Times |url=https://economictimes.indiatimes.com/markets/stocks/news/jm-financials-former-vp-settles-insider-trading-case-with-sebi/articleshow/77003008.cms |access-date=29 March 2022}} From 2013 to 2014, Saraogi engaged in off-market transactions of JM financial shares without obtaining approval from his employer.

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).{{Cite news |last=Zachariah |first=Reena |date=2024-06-20 |title=Sebi confirms interim direction; bans JM Financial from managing debt public issues till Mar 2025 |url=https://economictimes.indiatimes.com/markets/stocks/news/sebi-confirms-interim-direction-bans-jm-financial-from-managing-debt-public-issues-till-mar-2025/articleshow/111145910.cms |access-date=2024-06-21 |work=The Economic Times |issn=0013-0389}}

{{reflist}}

• [https://jmfl.com/ Official site]

{{Investment banks}}

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Category:Investment banks in India

Category:Indian companies established in 1973

Category:Financial services companies of India

Category:Companies listed on the Bombay Stock Exchange

Category:Companies listed on the National Stock Exchange of India