NSEIX, London Stock Exchange sign MoU to deepen capital market ties

NSE IFSC Limited (NSEIX) and London Stock Exchange plc signed a Memorandum of Understanding (MoU) to explore strategic collaboration aimed at driving cross-border growth alongside innovative listing and trading opportunities for issuers and investors across both jurisdictions.

NSE IFSC Limited (NSEIX) and London Stock Exchange plc signed a Memorandum of Understanding (MoU) to explore strategic collaboration aimed at driving cross-border growth alongside innovative listing and trading opportunities for issuers and investors across both jurisdictions. The bilateral agreement established a broad framework to pursue commercial opportunities across multiple financial market segments. Under this arrangement, both bourses agreed to evaluate dual and cross-listings across products comprising equity, fixed income, and exchange-traded funds (ETFs).

The partnership outlined plans for trading existing financial instruments as well as creating new offerings. This initiative included the prospective rollout of derivative contracts listed on NSEIX that referenced FTSE Russell indices as the underlying benchmark. Both entities also agreed to examine the joint creation of new equity indices, cross-border trading connectivity, and market data distribution. Highlighting the scope of the bilateral engagement, V. Balasubramaniam, Managing Director and Chief Executive Officer of NSEIX, described the agreement as a significant milestone emerging from wider bilateral economic dialogues.

"The seeds of this collaboration have germinated from The India-UK Comprehensive Economic and Trade Agreement (CETA), which aims at opening new avenues in capital markets connectivity and financial services integration between London and India," Balasubramaniam said. He noted that the partnership established an initial operational bridge between the two financial centers to widen investor participation and market depth.

"The LSEG and NSEIX have taken this first step towards collaborations through dual listings and cross listings across products and exploring a cross-border connect between the two exchanges to provide seamless bidirectional trading opportunities leading to higher liquidity and a larger pool of investors," he stated. Pointing to the institutional positioning of both entities, Balasubramaniam stressed that mutual operational advantages supported the tie-up.

"NSEIX being a market leader in GIFT IFSC ecosystem and London Stock Exchange the largest and oldest Stock Exchange in United Kingdom, can leverage each other’s strengths and we see this as a timely opportunity to deepen connectivity between the financial markets of the two countries," he added. Welcoming the development from the British side, Dame Julia Hoggett, Chief Executive Officer of London Stock Exchange plc and Head of Digital and Securities Markets at LSEG, underscored London's international partnership network.

"The London Stock Exchange has a strong track record of building collaborative partnerships with exchanges globally, and we are delighted to strengthen our relationship with NSEIX and explore new growth opportunities," Hoggett said. She noted that the formal pact represented continuity in linking established capital ecosystems.

"The signing of this MoU marks the next step in our sustained efforts to connect two of the world's great capital markets, to create tangible benefits for the investors and companies we serve," Hoggett said. (ANI)