Morgan Stanley has announced it is to re-enter the investment banking business alone.
In February this year, the bank ended its seven year partnership with JM Financial, buying out the Indian banks 49% stake in equity broking company J M Morgan Stanley Securities Pvt Ltd for £220m. In exchange, JM Financial bought Morgan Stanleys 49% share in J M Morgan Stanley Pvt Ltd for £10m, a joint venture in fixed income, equity broking, wealth management, advisory and distribution activites.
Meanwhile, VK Bansal has left his position as JM Financial Managing Director of Investment Banking to join Morgan Stanley. However, Morgan Stanley have now decided to re-enter the investment banking business alone, expanding its asset management business and propriety business as well as starting a wealth management business in India . In addition, the bank also intends to begin a fixed income business. The expansion shows the banks determination to succeed in India, having recently announced the appointment of Narayan Ramachandran as CEO and Country Head for Morgan Stanley in India. Furthermore, Rakesh Singh, Partha Basu, Sumit Puri, Amitava Neogi, Himangshu Bhagat and Himangshu Jain have all joined the bank from Merrill Lynch .




