LSEG and National Stock Exchange of India sign MoU

• LSEG and NSE sign MoU to work towards a dual listing route for Masala bonds
• Agree to explore the launch of ELITE, LSEG’s successful business support and capital raising initiative for private high-growth companies, in India in 2019
• Reinforces London Stock Exchange’s status as India’s funding partner of choice

London Stock Exchange Group (LSEG) announces today that it has signed a Memorandum of Understanding (MoU) with National Stock Exchange of India (NSE). LSEG and NSE will work together on creating a dual listing route for Masala bonds and explore the launch of ELITE, LSEG’s successful business support and capital raising programme for private high-growth companies, 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. It was 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 a route for Masala Bonds 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 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).

LSEG and NSE also agree to 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 community across the country to integrate them with the global ELITE community. This is with the ultimate goal of raising 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 would enhance visibility, increase liquidity in secondary markets and enhance efficiency of price discovery for Masala 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 SMEs can showcase their growth stories and launched EMERGE platform for 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 and Director of International Development, LSEG:
“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 complementary and valued funding partner to India.”