JM Financial Limited

2. Company profile

(a) Background of the company

JM Financial Limited is an India-based holding company. It operates, through its

subsidiaries, joint venture and associate companies, forming a financial services group,
JM Financial. The Company operates in four segments: Investment banking and
securities business, securities funding and fund-based activities, alternative asset
management and asset management. Investment banking and securities business includes
advisory and execution services. Securities funding and fund based activities include
providing finance against securities to a range of corporate and non-corporate clients.
Alternative asset management includes managing funds of institutional and non-
institutional investors. Assets management includes managing mutual fund assets through
schemes offering a range of investment options a number of investors. In April 2010, the
Company acquired the remaining 50% interest in Infinite India Investment management
Pvt Ltd. (Infinite).

JM Financial Limited, through its subsidiaries, provides various financial services to

corporations, financial institutions, high net-worth individuals, and retail investors in
India. The company provides a range of services in the areas of raising capital, mergers
and acquisitions, restructuring, financial advisory, private equity, capital structuring,
financial instruments, and marketing strategies; and investment advisory services in the
areas of wealth management and equity broking, as well as independent financial
advisory services. It also provides institutional equity sales and broking, asset
management, private equity, special situations fund, real estate fund, asset reconstruction,
commodities broking, non banking financial products, and debt financing solutions. The
company was founded in 1973 and is based in Mumbai, India.

JM Financial is an integrated financial services group, offering a wide range of services

to a significant clientele that includes corporations, financial institutions, high net-worth
individuals and retail investors.

Our people bring knowledge, experience and diversity to bear in our every endeavour.
Their talent and passion has powered us to the pre-eminent position we occupy in the
Indian financial services landscape.
(b) Nature of the business

JM Financial is an integrated financial services group, offering a wide range of services

to a significant clientele that includes corporations, financial institutions, high net-worth
individuals and retail investors.

The Group has interests in investment banking, institutional equity sales, trading,
research and broking, private and corporate wealth management, equity broking,
portfolio management, asset management, commodity broking, NBFC (Non Banking
Finance Company) activities, private equity and asset reconstruction. While each of these
businesses is independent in itself, they share the Groups belief of trust being the most
important factor for the organisation. The values of integrity, teamwork, innovation,
performance and partnership shape the corporate vision and drive it to its purpose.

JM Financial Services Private Ltd is the dedicated financial services arm of the JM
Financial Group. We are one of the largest brokerage firms in India, offering
comprehensive investment advisory and investment management services to institutions,
banks, corporate, ultra high net-worth individuals and Family offices.

With more than three decades of experience & expertise in managing wealth, we offer
our clients guidance to grow, protect & transfer their wealth.

An exclusive level of personal attention, research capabilities and in-depth capital market
expertise enables us to design and execute customised investment solutions for our
clients. We provide comprehensive financial planning, research-based investment
consulting services and execution capabilities.

We service our investors through three distinct businesses, which draw on the full
spectrum of the Group’s resources; research base and expertise to generate investment
ideas for our clients. These solutions incorporate a wide range of financial products to
meet individual client needs, both short-term and long-term.

We are among the largest distributors of third party products (Mutual funds/IPO). We
have a strong network of more than 25,000 IFA s spread across India. We facilitate client
transactions with a diverse group of financial institutions, investment funds, governments
and individuals, trading of and investing in fixed income and equity products and
derivatives on these products.
(c) Vision statement

To be the most trusted partner for every stakeholder in the financial world

Milestone

Leaders in Innovation

 JM Financial has been a leader in Innovations and introduced various

financial instruments in the Indian Capital Markets such as :
• Partly Convertible Debentures
• Non-Convertible Debentures with Warrants
• Zero Interest Bonds
• Secured Premium Notes
• Double Option Bonds & Deep Discount Bonds

 Sponsored one of India’s first private sector mutual funds namely JM

Financial Mutual Fund (formerly known as JM Mutual Fund)

 One of the largest PAN India networks of IPO & Mutual Fund Agents(IFA s)

 Instrumental in introducing Book Building process for IPO’s in India

Our Values

We have always sought to be a value-driven organization, where our values direct our
growth and success.

Integrity: Integrity is fundamental to our business. We adhere to moral and ethical

principles in everything we do as professionals, colleagues and corporate citizens. Our
reputation based on our high standards of integrity is invaluable.

Teamwork: We believe extensive teamwork is what makes it possible for us to work

together towards a common goal. We value and respect each individual's commitment to
group effort.

Client Focus: We always put the interest of our clients before our own. We understand
our client needs, seek new opportunities for them, address them and deliver unique
solutions as per their expectations. The success of our clients is the biggest reward for us.

Innovation: We understand our clients' needs and develop solutions for the most
complex or the simplest, the biggest or the smallest financial transactions, whether for
individuals or institutions. Creativity and innovation are key factors to everything we do.
We encourage new ideas, which help us address unique opportunities.

Implementation: Our expertise, experience and our continuous focus on the quality of
execution ensures effective implementation of our strategies.

Performance: We believe in development of our people and continuously hone our

skills, setting higher targets of performance for ourselves. We strive to attract, develop
and retain the best talent. We recognize and reward talent based on merit.

Partnership: Our relationships with all our stakeholders reflect our spirit of partnership.
Clients see us as trusted advisors, shareholders see us as partners and employees see us as
family. We respect, trust and support all our stakeholders

Our Philosophy

We believe self-trust is the first step towards trusting others.

Our philosophy is to provide advisory services to make your investments as successful as
you. For us anything worth doing is worth doing well.

We believe:
• Earning trust is a process (it can be gained and lost every day!)
• Sharing trust creates great teams (whether between employees or between
organisations)
• Being trustworthy is the most efficient way of generating and retaining long-term
business.
Business

Investment Banking

JM Financial Consultants Private Limited, the JM Financial group’s Investment Banking

arm, is one of India’s most respected domestic investment banks. We provide a wide
range of services – raising capital, mergers, acquisitions, restructuring, financial advisory
and private equity - to a diversified client base of Indian corporatism in the domestic and
international capital markets. Since inception we have pioneered several innovations in
the Indian capital markets in the areas of capital structuring, financial instruments and
marketing strategies. We have made a substantial contribution to the overall development
of the Indian capital markets as well as the landscape of mergers and acquisitions in
India.

Over the years, we have won many awards for our advisory and execution capabilities.
Our philosophy of forging long-term partnerships with clients is reflected in our long and
strong relationships with India’s leading business houses.

Investment Advisory

JM Financial Services Private Limited focuses on Investment Advisory and Wealth

Management businesses. We provide comprehensive financial planning, research-based
investment consulting services and execution capabilities.

They are organized in three main divisions : Wealth Management Group, Equity Broking
& Independent Financial Advisor, which draw on the full spectrum of the Group's
resources, research base and expertise to generate investment ideas and develop
customized investment solutions for our Clients.
These solutions incorporate a wide range of financial products to meet individual client
needs, both short-term and long-term. They are among the largest distributors of third
party products including mutual funds.
Wealth Management Group

Private wealth group (for individuals):

JM Financial Private Wealth Group makes a world of a difference to Wealth

Management. It is an exclusive advisory service for High Net-worth Individuals and
Family Offices who deserve high level of personal attention and execution expertise in
managing their wealth. Client confidentiality is the backbone of their success.
They provide a world of exclusive opportunities to grow their client’s wealth through the
Open Architecture model i.e. either through their proprietary products or third party
manufacturers.
JM Financial stands as one of the wealth management leaders today. It is one of select
few firms that provide its clients a complete suite of financial products & services
ranging from his investment needs to business needs.

Founded on the principle of constant innovation, they have the expertise as well as the
experience and perspective earned over generations of managing wealth. In other words,
they are well equipped to address their client’s complex wealth planning challenges and
help them benefit from the industry's most promising new ideas.
Private Wealth Group looks after the financial needs of high net-worth individuals, who
wish to focus on the capital markets.

Corporate wealth group (for institutions):

Corporate Wealth Group – focuses on providing investment strategies to institutions and

corporate clients They Provide research-based treasury management services. They
founded on the principle of innovative thinking and commitment to flawless execution.
They provide financial solutions to Corporate Treasuries on Asset and Liabilities.
They provide customized solutions across a wide range of financial products to protect
and enhance the investor's wealth with a client centric approach.
Their research and product teams continuously track global and local markets for
providing investment ideas and market updates to Corporate. An exclusive level of
personal attention, research capabilities and execution expertise enables us to design and
execute customized investment strategies for their clients.
Equity Broking

Equity Brokerage Group offers equity trading and research based equity advisory
services to retail clients, high net worth individuals and institutions like corporate
treasuries and banks. The Group focuses on generating wealth for clients through stock
ideas and trading strategies.

1. Equity Trading

Equity trading team provides trading ideas and strategies through a team of experienced
dealers. Innovative alpha strategies are generated based on market technical and beta
strategies like participating in stock buybacks, arbitrage.

The thematic high return trading ideas is a key value added service. Apart from the
above, they deliver high quality personalized service to their clients, supported by a
strong operations team using state of the art trading and risk management systems.
JM Financial Group expertise across the capital markets spectrum and execution
capabilities has enabled them to successfully execute many buy-back offerings.

2. Equity Advisory

They offer equity advisory services to high net worth clients and institutions through a
team of expert investment advisors. They provide the level of sophistication and access to
expertise typically reserved for large corporations and financial institutions. The advisory
team specializes in generating investment worthy ideas or portfolio picks and trading
opportunities depending on the clients risk appetite and investment horizon.

3. Equity Research

JM Financial Institutional Securities Private Limited offers quality research and analysis-
based broking services to both domestic and offshore institutional clients.

A dedicated research team provides significant insights through independent, in-depth

research and analysis on quality growth companies across the market- capitalization
spectrum. The team publishes detailed reports across firms and sectors, pertaining to the
Indian economy, corporate and related market intelligence. The sales team comprises
experienced traders who work closely with the research team to provide timely
dissemination of information and identify superior investment opportunities to global
institutional investors.
Independent Financial Advisor

Independent Financial Advisors (IFA s) are the only type of financial advisers who are
able to select from all the products available in the marketplace - making sure the client
get right product for his individual needs.

1. Primary Market

They are one of the pioneers in the area of education & training IFA s, which adds value
and helps the IFA in growing their business and long-term relationships with clients.

2. Capital market

Over 3 decades of Innovation & Leadership has transformed JM Financial Group into a
financial services powerhouse offering a comprehensive range of capital market products
& services to a wide spectrum of clients like Foreign & Domestic Institutions,
Corporations, High Net worth and Retail investors.
Capitaline Data
Incorporation Year - 1986
Chairman - Nimesh N Kampani
Company Secretary - P K Choksi
Auditor - Khimji Kunverji & Co

History
JM Financial Limited (JM Financial) is an integrated financial services company
incorporated in 30th January of the year 1986 under the name of JM Share & Stock
Brokers (JMSSB). JM Financial offering a wide range of services to a significant
clientele that includes corporations, financial institutions, high net-worth individuals and
retail investors. The Company has interests in investment banking, institutional equity
sales, trading, research and broking, private and corporate wealth management, equity
broking, portfolio management, asset management, commodity broking, NBFC (Non
Banking Finance Company) activities, private equity and asset reconstruction.

JM Financial was started as a private limited company as an arm of JM Financial &

Investment Consultancy Services. As at 15th June of the year 1988, the company was
converted as a deemed public limited company and subsequently, the company became a
public company by making necessary alterations in its Articles of Association. The
Company entered into a Joint Venture agreement with Morgan Stanley in December of
the year 1997. During the year 2001, the company redeemed last instalment of 14%
Debenture and also repaid part of its unsecured loans to its promoters with the ultimate
objective of bringing down the borrowing and making the company a Zero Debt
Company.

During the year 2004, the company had changed its name from JM Share & Stock
Brokers to JM Financial Limited. J.M. Securities Private Limited was amalgamated with
the company in the year 2006. JM Financial had launched a corporate private equity fund
in August of the same year 2006 under the name of JM Financial India Fund, with US-
based Old Lane Partners, LP, being the lead investor/co-sponsor to the Fund. As of
August 2007, the company had launched a unique Portfolio Management Scheme that
aims to offer 100% capital protection as well as potential capital appreciation based on
the Dynamic Portfolio Insurance (DPI) methodology. As at March of the year 2008, JM
Financial had acquired JM Financial ASK Securities Private Limited. The Company has
opened a full fledged branch at Vizag, the port city of Andhra Pradesh in the month of
September of the same year 2008.
Management
Designation Name Remunerations
Chairman & MD Nimesh N Kampani 11,125,912.00
Director Ashith N Kampani 730,000.00
Director E A Kshirsagar 1,140,000.00
Director D E Udwadia 890,000.00
Director Pravin P Shah 1,040,000.00
Director Paul Zuckerman 530,000.00
Additional Director Vijay Kelkar 470,000.00
Company
Secretary P K Choksi