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Dec 16, 2015

India’s National Stock Exchange teams up with LSE Group

Joint trading platform agreement could research new trading products as India seeks to create international finance center

India’s National Stock Exchange (NSE) has signed an agreement with London Stock Exchange (LSE) Group that could lead to the creation of a joint trading platform in a special economic zone in India, designated as the country’s first international finance center.

The memorandum of understanding signed in London also calls for the two exchanges to work toward the creation of a joint research center to study new trading products, according to a press release issued by the NSE and LSE Group. The two say they also plan to explore opportunities to work together on projects related to indexes and the development of debt markets under the agreement.

‘The NSE is a world-class exchange, a leader in India and Asia, with an ever-increasing global footprint,’ says Xavier Rolet, chief executive of LSE Group, in the press release. His group ‘offers the world’s most international financial market and, through a true partnership with NSE, we can support the development of India’s capital market infrastructure and financing opportunities for Indian corporates and infrastructure companies.’

The NSE says the agreement is meant to bolster the Indian government’s special economic zone plan for the state of Gujarat, designed to attract international finance firms to the state. The project, known as Gujarat International Finance Tec-City (GIFT City), will benefit from special rules allowing greater levels of foreign investment in local projects and lower taxes, according to India’s government. GIFT City, long backed by Indian Prime Minister Narendra Modi, is meant to create a finance center to compete with Dubai and Singapore.

‘India is one of the world’s fastest-developing economies,’ says NSE chief executive Chitra Ramkrishna. ‘Investors across the world are keen to increase their involvement with and benefits from its growth story. In the coming together of the two world-class exchanges, NSE and LSE Group seek to establish strategic long-term collaborations. NSE is committed to broaden and deepen financial markets through such partnerships.’