India’s National Stock Exchange and London Stock Exchange Group sign letter of intent

  • Agreement to explore feasibility of mutual licensing of indices, enabling access to each other’s markets
  • Training and education on SME markets

London Stock Exchange Group (LSEG) and India’s National Stock Exchange (NSE) today signed a Letter of Intent to evaluate joint strategic business opportunities, and to co-operate together more closely in the future.

As part of the Letter, both exchanges declared their intent to explore the feasibility of an agreement whereby FTSE Group may licence the FTSE 100 Index to the NSE, and whereby the NSE may licence the S&P CNX Nifty (Nifty 50) to LSEG for the purpose of issuing and trading options and other index contracts.

It also conveys the intention of both parties to evaluate other joint strategic opportunities, such as allowing access to each other’s market as and when regulatory framework permits.

Additionally, the two signatories will explore the possibility of holding joint training & education courses and seminars with a particular focus on Small and Medium sized Enterprises (SMEs).

The Letter of Intent was signed in Mumbai by Xavier Rolet, Chief Executive of LSEG and Chitra Ramkrishna, Joint Managing Director of the NSE, in the presence of the Hon. George Osborne MP, the Chancellor of the Exchequer of the United Kingdom, who is leading a high profile British business delegation to Mumbai.

Speaking at the signing Xavier Rolet said:

“The Letter of Intent we have signed with the NSE today illustrates London Stock Exchange Group’s commitment to India, and we believe it will lead to significant benefit for the customers and shareholders of our respective exchanges. We are optimistic about India’s remarkable growth story and feel strongly that a business relationship with India’s leading stock exchange opens exciting investment opportunities for Indian investors in international companies, as well as giving international investors greater opportunities to participate in India’s growth.”

Ms. Chitra Ramkrishna said:

“We are confident that the Letter of Intent with the London Stock Exchange will open up newer investment opportunities for Indian investors and expand the bouquet of investible instruments NSE platform provides. We also hope to draw upon the expertise of LSE in the SME segment for the benefit of Indian SMEs and investors.”

-ends –

For further information contact:

NSE

Corporate Communications

Phone +91 22 26598148

cc_nse@nse.co.in

Or

London Stock Exchange Group

Mohan Bhuyan, Media Representative (India), London Stock Exchange

+91 9810058564

mbhuyan@gmail.com

Or

Jonny Blostone, Press Office, London Stock Exchange Group

+ 44 (0)20 7797 1222

newsroom@londonstockexchange.com

Notes to Editors:

  1. There are currently 66 Indian or India focussed companies on the London Stock Exchange’s markets. Collectively they have raised US $ 7.5 billion. A record £82.5 billion was raised through new and further issues of equity on the London Stock Exchange during the course of 2009. Over US $ 7.7billion has been raised by IPOs in London so far in 2010 of which Indian companies accounted for just over US $ 2bn.

About London Stock Exchange Group:

London Stock Exchange Group (LSEG) incorporates Borsa Italiana and the London Stock Exchange. It has over 500 member firms and more than 3,000 companies quoted across its markets.

The London Stock Exchange itself is the world's most international exchange with around 600 overseas companies from almost 70 countries. These figures include international companies quoted on the Alternative Investment Market (AIM), the world's most successful market for SMEs, with over 1,200 companies in total.

LSEG also offers a range of corporate and government fixed income services through MTS, the Order Book for Retail Bonds (ORB) and Mercato Telematico delle Obbligazioni (MOT). It also offers trading in Italian derivatives through IDEM, and Russian and Scandinavian derivatives through EDX London.

LSEG also offers post-trade services such as netting, clearing and settlement. These include services from Monte Titoli, and Cassa di Compensazione & Garanzia (CC&G).

LSEG also includes MillenniumIT, a leading developer of high performance trading platforms and financial markets software.

Turquoise, LSEG’s Multilateral Trading Facility (MTF) provides pan-European and US lit and dark equity trading in some 2,000 securities across 19 countries.

About NSE

National Stock Exchange (NSE), established in the mid 1990s as a demutualised electronic exchange by leading Indian financial institutions, offers trading, clearing and settlement services in a range of products covering equity, debt and equity derivatives. It is India's largest exchange and ranks third globally by number of trades in the equities market. NSE has played an important role in helping reform the Indian securities market and in bringing about transparency, efficiency and market integrity.

NSE introduced trading in equity derivative products in 2000-01. In this short span of time, NSE has become the largest exchange in single stock futures and ranks fourth in index futures globally. Its flagship index, the NIFTY 50, is used extensively by investors in India and around the world to take exposure to the Indian equities market. For more information, visit http://www.nseindia.com

About the FTSE 100

The FTSE 100 index comprises the 100 most highly capitalised blue chip companies incorporated in the UK, representing approximately 81% of the UK public market’s capitalisation. It is used extensively as a basis for investment products, such as derivatives and exchange-traded funds. There are currently two India-based companies in the FTSE 100: Vedanta Resources and Essar Energy

About S&P CNX Nifty (Nifty 50)

S&P CNX Nifty is a 50 stock, float-adjusted market-capitalization weighted index, accounting for 22 diversified sectors of the economy. The Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. The index captures approximately 63% (as of June 30, 2010) of its float-adjusted market capitalization of the companies listed at National Stock Exchange (NSE) and is a true reflection of the Indian stock market. The total traded value for the last six months (as of June 2010) of all Nifty 50 stocks is approximately 48% of the traded value of all stocks on the NSE.