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.

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 as the world's second-biggest securities firm opted to end the seven-year alliance. The US bank acquired the equity sales, trading and research teams from the venture for $425 million.

JM kept the retail, investment banking and fixed-income units that generated 45% of revenue and a client list including Reliance Industries Ltd, India's most valuable company, and three-quarters of the nation's top 100 enterprises. 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.

"If you are not a global institution, where you can access capital from across the world, you are handicapped," Ravi Menon, investment banking co-head at HSBC Securities & Capital Markets Ltd, said in Mumbai. "But I see no reason why you can't have Indian MNC banks the way you have Indian MNC companies," he said, referring to multinational corporations. "Of course, it will take time."

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