London Stock Exchange ETFs in GIFT City: Could NSE IX-LSE deal expand global options for Indian mutual fund investors?
For mutual fund investors, a new pact could open up opportunities to access London Stock Exchange (LSE)-listed ETFs through NSE International Exchange (NSE IX) in GIFT City.
According to a press release on Tuesday, NSE IFSC (NSE IX) and the London Stock Exchange signed a Memorandum of Understanding (MoU) to explore areas of strategic collaboration to drive cross-border growth and innovative listing and trading opportunities for issuers and investors in both jurisdictions.
NSE IX, set up in GIFT City in 2017 and recognised by the International Financial Services Centres Authority (IFSCA), is a multi-asset exchange offering products such as derivatives, depository receipts and global stocks.
The MoU establishes a broad framework for collaboration, including exploring dual and cross-listings across products such as equities, fixed-income securities and ETFs. Cross-listing allows a security to be listed on exchanges in more than one market or country. Here’s what this could mean for mutual fund investors.
Shweta Rajani, Associate Director at Anand Rathi Wealth, said the recent MoU between NSE International Exchange and the London Stock Exchange is an important step towards deepening India’s access to global capital markets through GIFT City.
“For investors, it creates the possibility of accessing a wider range of international products, including equities, fixed-income securities and ETFs, through the IFSC ecosystem. If the cross-listing framework is implemented, LSE-listed ETFs could become available on NSE IX, potentially making global investing more accessible and convenient for Indian investors,” she added.
For Indians, access to NSE IX products requires opening a trading and demat account with an authorised IFSC intermediary, completing the applicable KYC and regulatory requirements and funding the account through Liberalised Remittance Scheme limits and other RBI requirements, Rajani mentioned.
Under the LRS, resident individuals can remit up to $250,000 in a financial year for permitted transactions, including eligible overseas investments.
Rajani said the key difference would be the investment route and the level of investor control. An exchange-listed ETF would allow investors to buy and sell units on the exchange during market hours, with prices determined by market trading.
In contrast, GIFT City funds and international mutual funds or funds of funds (FoFs) are pooled investment vehicles in which the fund manager makes investment decisions and investors transact at the fund’s net asset value (NAV).
Therefore, the ETF route could offer flexibility and direct access to specific international strategies, while funds may be more suitable for investors looking for professionally managed, diversified exposure, she added.
Currently, the MOU has not mentioned any specific ETFs. If LSE-listed ETFs are eventually made available through NSE IX, investors could potentially access products tracking indices such as the FTSE 100, FTSE All-World and other developed or emerging markets, along with global fixed-income and other asset-class ETFs, Rajani mentioned.
“However, the actual product list is yet to be announced. Investors would need to evaluate the availability, liquidity, costs, and taxation of each product before making an investment decision,” she added.
Rajani said cross-listings with overseas markets could give fund managers access to a broader range of international products, including equities, ETFs and fixed-income securities.
However, there is currently no confirmed timeline for LSE-listed ETFs to become available on NSE IX. The process would involve multiple stages, including regulatory approvals, issuer participation, and the development of the required market infrastructure, she added.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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