Nimesh Kampani, chairman of the JM Financial group, talks to Business Standard on what led to the parting of ways with decade-old foreign partner Morgan Stanley.

Why did you decide to separate?

I've not decided to separate. It was Morgan Stanley's decision. Goldman Sachs and Kotak Mahindra parted ways. Merrill Lynch took control of 90 per cent stake in DSP-Merrill Lynch.

Many foreign firms, such as Credit Suisse, are coming back to India. Morgan Stanley thought of having its own operations. We have both prospered in the decade of our partnership. But, they thought of bringing more products and taking more risks.

They asked if I could remain as a minority shareholder after they bought out my stake. I built the business of JM Financial in 1973. After several rounds of discussions, we finally decided to part. We are creating value for our shareholders through this deal. Morgan Stanley will apply to the Sebi for a new merchant banking licence.

Do you regret the separation?

It is a good decision for them. By 2010 or 2015, the value of the company would have been different and I would then be regretting for leaving so early. I think one needs to be disciplined to think what one does today is the best. So remain in the present and move forward. You never know what will happen tomorrow.

What will happen to overseas deals?

We may not float American depository receipts or global depository receipts to start with. Our objective is to create value for our shareholders. That is more important to us. We are a listed company and, ultimately, the earnings of our shares are important to us.

Post-deal, how will the two companies tap talented staff?

We have a no-poaching agreement with Morgan Stanley for two years. This means we need to hire employees from competition.

Will you compete with Morgan Stanley?

We will be competing with Goldman Sachs, Merrill Lynch, Credit Suisse and Morgan Stanley too.

Are you looking for a new partner?