To comply with updated regulations, Vishal Kampani vacates MD’s office

Vishal Kampani, son of Nimesh Kampani (Indian securities market veteran) decides not to seek re-appointment as MD of JM Financial (JMF) and instead decides to take the position of Non-Executive Vice Chairman w.e.f. October 1, 2021.

Key points to note –

  • Kampanis (promoter family) own 54.75% of JMF.
  • Decision to give up MD post is to comply with the requirement of regulation 17(1B) of the Listing Regulations coming into effect from April 1, 2022, which inter alia, requires that the Chairman not be related to the MD. Nimesh Kampani (the father) is currently the Non-Executive Chairman and hence Vishal would not have been able to continue as MD beyond March 31, 2021.
  • The vacated MD post has been filled by creating two Joint MD posts and the same have been entrusted to two old confidantes at JMF – Mr Atul Mehra and Mr Adi Patel – each with about 30 years at JMF. Detailed profile of both can be checked from the source link above.

There is not much to be read from the above reshuffle – though whether it satisfies the spirit of the proposed regulatory change is unclear.

It’s not easy for promoter families to give up control and that too when the economy is looking up and the securities business in general is expected to do well.

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