Wednesday, March 28, 2007

JM Financial may buy brokerage after Morgan Stanley split

JM Financial Ltd, Morgan Stanley’s former partner in India, may buy a local brokerage to rebuild the equity sales and research teams it sold to the New York investment bank, director Vishal Kampani said.

Kampani last month helped his father Nimesh negotiate the breakup with Morgan Stanley, the world’s second-biggest securities firm. The US bank acquired the equity sales, trading and research teams from the venture for $425 million (Rs1,835 crore).

JM retained the retail, investment banking and fixed-income units that generated 45% of revenue and a client list including Reliance Industries Ltd and three-quarters of India’s top 100 companies. By going alone, JM may struggle to meet its biggest clients’ appetite for funds and financial services as Indian companies embark on record stock sales and acquisitions.

Read more in The Live Mint article.

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