Hong Kong, Feb 22: Morgan Stanley has agreed with JM Financial to end their Indian partnership as the US firm expands in one of Asia's fastest-growing markets for investment banks.
Under the agreement, announced on Thursday, the US investment bank would acquire the joint venture's institutional equities sales, trading and research platform for 5 million.
JM Financial would acquire the investment banking, fixed income and retail operations for million, resulting in a net consideration of 5 million to be paid by Morgan Stanley.
''Morgan Stanley will expand its wholesale businesses and develop a platform in India that is fully integrated with its global footprint,'' the investment bank said in a statement.
Morgan Stanley has plans to increase its Asian global capital markets staff by up to 25 percent with fast-expanding economies like China and India becoming hot markets for investment banks.
Investment bank revenues in India jumped 23 percent in 2006 to 3 million as companies raised record funds and bought other firms. Fees more than doubled in 2006.
Morgan Stanley India said it would combine its existing wholly-owned businesses, including Morgan Stanley Investment Management and Morgan Stanley Real Estate, alongside the institutional equities business.
It would also roll out its own investment banking, capital markets, fixed income and private wealth management operations.