LSEG Signs Agreement with National Stock Exchange of India

The London Stock Exchange Group (LSEG) announced on Friday that it has signed a Memorandum of Understanding (MoU) with the National Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term of India (NSE). Together, the exchanges will work towards creating a dual listing route for Masala bonds.

Furthermore, LSEG and NSW will potentially launch ELITE - LSEG’s business support and capital raising programme for quickly growing companies. This is expected to go live in India in 2019.

MoU Aims to Dual List Masala Bonds on The NSE International Exchange

For Masala bonds, the London Stock Exchange is the leading international listing venue. So far, the exchange has listed 46 Masala bonds, raising more than the equivalent of $5 billion. The partnership aims to dual list these bonds also on NSE’s International Exchange and NSE IFSC Limited.

Commenting on the MoU Vikram Limaye, the MD & CEO of National Stock Exchange of India, said: “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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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.”

On Friday, the MoU was signed by Limaye and Nikhil Rathi, the CEO of London Stock Exchange Plc. Shri MK Das, the Principal Secretary to Hon’ble Chief Minister, Government of Gujarat, India witnessed the signing.

Nikhil Rathi, the CEO of London Stock Exchange Plc and Director of International Development at LSEG added: “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.”