London and Indian stock exchanges agree to evaluate joint strategic opportunities

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Written by Ray Clancy

Friday, 30 July 2010 08:34

India’s National Stock Exchange and London Stock Exchange Group have signed a letter of intent aimed at exploring access to each other’s markets.

They will evaluate joint strategic business opportunities to co-operate more closely in the future and look at mutual licensing of indices, they said in a joint statement at Prime Minister David Cameron’s high profile visit to India came to an end.

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 and 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 George Osborne MP, the Chancellor of the Exchequer of the United Kingdom, who was part of the British business delegation to India.

‘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,’ said Rolet.

‘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,’ he added.

Ramkrishna said it 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,’ he added.