London, September, 2018:National Stock Exchange of India (NSE) announces today that it has signed a Memorandum of Understanding (MoU) with London Stock Exchange Group (LSEG). NSE and LSEG will work together on creating a duallisting route for Masala bonds& foreign currency bonds of Indian Issuers and explore the launch ofELITE, LSEG’s successful business support and capital raising programme for Small and Medium Enterprises (SMEs) in India in 2019.
The MoU was signed by Vikram Limaye, MD&CEO, National Stock Exchange of India and Nikhil Rathi, CEO, London Stock Exchange Plc and witnessed by Shri MK Das, Principal Secretary to Hon’ble Chief Minister, Government of Gujarat, India.
London Stock Exchange is the leading international listing venue for Masala bonds, having listed 46 Masala bonds which have raised over $5 billion equivalent. Together, LSEG and NSE will look to provide aroute for Masala Bonds and foreign currency bonds of Indian issuers listed on London Stock Exchange to be dual listed on NSE’s International Exchange, NSE IFSC Limited, in Gujarat International Finance Tech (GIFT) city. Similarly, Masala Bonds and foreign currency bonds of Indian issuers listed on NSE IFSC in GIFT City will be dual listed on London Stock Exchange. Through the approval of a single listing document , an issuer will be able to obtain a dual listing on London Stock Exchange’s International Securities Market and GIFT City, gaining access to an enhanced investor base of global institutions based in London, as well as domestic and regional investors registered on NSE IFSC. GIFT City, a special economic zone, is India’s first International Finance Centre (IFC).
NSE and LSEG also agreedto explore the launch of ELITE in India in 2019. The MoU outlines the parties’ commitment to engage with growing companies, leading financial institutions and the broader SME communityacross the country to integrate them with the global ELITE community. This is with ultimate goal ofraising awareness of the investment opportunities in India and helping to attract more international capital into domestic capital markets.The ELITE global community today is made up of over 900 private, ambitious companies from 32 countries and over 30 sectors.
Vikram Limaye, MD&CEO, National Stock Exchange of India:
“India is one of the world’s fastest growing economies. Investors across the world are keen to invest in India and benefit from its growth story. Dual listing of Masala Bonds and foreign currency bonds of Indian issuers would enhance visibility, increase liquidity in secondary markets and enhance efficiency of price discovery for the bond issuers. This would also reduce the cost of raising capital for all issuers and encourage the participation of a wider variety of issuers in the masala bond market.
NSE has focused on developing an ecosystem where the SMEs can showcase their growth stories and launched EMERGE platform for the SMEs in India to raise equity funding. By jointly launching ELITE in India, we aim to enhance our offerings for SMEs by providing training, support and capacity building for these growth companies. ELITE will bring a more in-depth and formalised process to help SMEs scale up their businesses and integrate them with the global ELITE community.
NSE and LSEG have collaborated over the years and I am confident that this partnership would strengthen the capital markets in both the countries and create global awareness of the opportunities that exist in India.”
Nikhil Rathi, CEO, London Stock Exchange Plc:
“We are honoured to welcome Vikram Limaye, CEO of National Stock Exchange of India and Shri MK Das, Principal Secretary to Hon’ble Chief Minister of Government of Gujarat to London Stock Exchange today. Today’s MoU signings demonstrate LSEG’s and NSE’s commitment to promoting the interconnectedness between the UK and Indian capital markets, supporting global awareness of the opportunities that exist in
India’s first international financial services centre, GIFT City, and championing the development of the country’s SMEs.
Today also underlines the strength of the economic and financial partnership between the UK and India, reinforcing London’s position as a complimentary and valued funding partner to India.”