Ahmedabad: The London Stock Exchange (LSE) and NSE IFSC Ltd (NSEIX) signed a memorandum of understanding (MoU) on Wednesday to explore cross-border listings, trading, and new financial products. The agreement aims to deepen capital market links between India and the UK.The exchanges will explore dual and cross-listings in equities, fixed-income securities and exchange-traded funds (ETFs). They will also examine trading in existing financial products and the development of NSEIX-linked derivatives tied to FTSE Russell indices.The proposed collaboration also covers new equity indices, cross-border trading connectivity and market data distribution.Based at GIFT City, NSEIX offers single-stock and index derivatives, currency derivatives, depository receipts and global stocks. Its primary market products include equity shares, debt securities, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).The initiative follows the India-UK Comprehensive Economic and Trade Agreement (CETA). “The agreement aims to open up opportunities in capital market connectivity and financial services integration between the two countries,” NSEIX managing director and chief executive V Balasubramaniam said. “The proposed collaboration could enable trading in both directions. It could also improve liquidity and widen the investor base. NSEIX’s presence in the GIFT International Financial Services Centre (IFSC) ecosystem and the London Stock Exchange’s established market position could help deepen financial market links between the two countries.”Dame Julia Hoggett, chief executive of London Stock Exchange plc and head of digital and securities markets at London Stock Exchange Group, said the agreement would help connect the two markets. It would also create opportunities for companies and investors.
