JM Financial Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 28, 2008, inter alia, has transacted the following :

1. Recommended a dividend of 50% (Rs 5/- per share) (previous year - 50%) for the year ended March 31, 2008 and a special dividend of 200% (Rs 20/- per share) considering an exceptional income, being the profit on sale of 49% equity stake in Morgan Stanley India Company Pvt Ltd to Morgan Stanley.

2. Considered and approved, subject to the approval of shareholders, the issue of bonus shares in the ratio of three (3) shares for every two (2) shares held by the shareholders.

3. To split the face value of the shares of the Company to Re 1 per share from existing Rs 10 per share.

Both the above corporate actions (2 & 3) will be effected in relation to shares held by shareholders on the “Record Date” to be determined by the Board.

4. The Board has also decided to appoint Mr. Nimesh N Kampani as the Managing Director of the Company for the period from May 28, 2008 to September 30, 2011. Thus Mr. Kampani will be the Chairman and Managing Director of the Company.

5. The Directors also took note of the resignation of Mr. Dilip Kothari from the Board of the Company effective May 28, 2008.