JM Financial Buys Out its Joint Venture Business - JM Financial Ask Securities

Mumbai, March 31, 2008 : JM Financial Consultants Private Limited (a wholly-owned subsidiary of JM Financial Limited, a listed company) in its Board Meeting, approved to increase its equity stake in its Institutional Equity Sales, Trading & Research business - JM Financial ASK Securities Private Limited - from the current 60% to 100%, subject to necessary regulatory approvals. The name of the company, which presently is JM Financial ASK Securities Pvt. Ltd., will be changed after closing of the transaction and subject to necessary regulatory approvals.

Early last year, JM Financial Limited sold its 49% equity stake in its Institutional Equity business to Morgan Stanley for USD 445 million (approx. Rs.1,767 crore).

In October 2007, JM Financial Consultants Private Limited entered into a joint venture with ASK Group by acquiring a 60% stake in ASK Securities. With the proposed acquisition of the remaining stake, JM Financial Consultants Private Limited will now own 100% in the Institutional Equities business for a total consideration of Rs. 139.14 crore.

Mr. Nimesh Kampani, Chairman JM Financial Group said, "This acquisition is part of our on-going strategy to provide our clients the entire bouquet of financial services and to continue to strengthen the JM Financial brand as a leading financial services organisation. It is an important milestone for our Group and we believe this acquisition will help integrate our capital markets business further. This acquisition reflects and reiterates our determination to act in the best interest of our clients, our shareholders, our employees and our other stakeholders."

Post the commencement of the joint venture in the institutional equity business, JM Financial has added a team of talented professionals with frontline experience in sales and research to this business headed by Mr. Sameer Lumba. The institutional equity business will continue to focus on providing superior research-based broking services to institutional clients, both domestic and offshore.

About JM Financial Group

JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients. The Group has business interests in investment banking, institutional equity sales and broking, private and corporate wealth management, research, equity broking, portfolio management, asset management, commodity broking, NBFC activities and private equity. For more information, log on to www.jmfinancial.in.