Mumbai: JM Financial Services is acquiring a 60-per cent stake in domestic institutional brokerage and equity research firm ASK Securities for Rs58.14 crore.

JM Financial Services split from its seven-year partner Morgan Stanley in February this and sold two key businesses viz., institutional broking and sales, and equity research, to the US bank for $425 million (Rs1,912 crore).

Commenting on the joint venture, Nimesh Kampani, chairman, JM Financial Group said, "This joint venture is yet another step towards our long-term growth strategy of building a financial institution with a global reach."

The deal came about on the same day that JM Financial''s former partner, Morgan Stanley, received government clearance to invest Rs1,894 crore to conduct securities sales, trading and broking, merchant banking and corporate advisory services and other NBFC activities.

ASK Group, which has three businesses - institutional broking & equity research (ASK Securities), portfolio management services (ASK Investment Managers Ltd) and financial planning (ASK Wealth Advisors Pvt Ltd), separated from its foreign partner Raymond James by acquiring the 50 per cent held by the company in March.

The transaction is expected to close by the second quarter of financial year 2007-08, subject to necessary regulatory approvals.