NSEIX, London Stock Exchange sign pact to deepen India-UK market links

The MoU also covers possible joint development of new equity indices, cross-border trading connectivity and market-data distribution.

The agreement, announced at GIFT IFSC in Gandhinagar on October 13, will allow the two exchanges to explore opportunities for dual and cross-listings across equities, fixed income and exchange-traded funds. The partnership will also look at trading in existing financial products and the development of new products, including derivatives on NSEIX using FTSE Russell indices as underlying references.

The MoU also covers possible joint development of new equity indices, cross-border trading connectivity and market-data distribution. The framework is exploratory at this stage, but it signals a deeper push to connect Indian issuers and investors with London’s capital market ecosystem.

For NSEIX, the pact comes at a time when GIFT City is being developed as India’s international financial services hub. The exchange already offers a range of products, including Indian single-stock derivatives, index derivatives, currency derivatives, depository receipts and global stocks.

It also provides primary-market products such as equity share listings, SPACs, REITs, InvITs, depository receipts, debt securities and ESG debt securities under the IFSCA framework.

V Balasubramaniam, MD and CEO of NSEIX, said the collaboration had emerged from the India-UK Comprehensive Economic and Trade Agreement, which is aimed at opening new areas in capital-market connectivity and financial-services integration between London and India.

"The LSEG London Stock Exchange and NSEIX have taken this first step towards collaborations through dual listings and cross listings across products and exploring a cross-border connect between the two exchanges to provide seamless bidirectional trading opportunities, leading to higher liquidity and a larger pool of investors," Balasubramaniam said.

Dame Julia Hoggett, CEO of London Stock Exchange plc and Head of Digital & Securities Markets at LSEG, said the London Stock Exchange has a strong record of building partnerships with exchanges globally.

"The signing of this MoU marks the next step in our sustained efforts to connect two of the world's great capital markets, to create tangible benefits for the investors and companies we serve," she said.

The proposed collaboration could matter for Indian companies looking for wider pools of global capital, especially as domestic markets see rising IPO activity and more firms assess overseas investor access. Dual and cross-listing frameworks, if developed, could help issuers reach investors across jurisdictions while giving investors more routes to participate in Indian and India-linked products.

The agreement also points to the growing importance of GIFT IFSC as a bridge between domestic Indian markets and international capital. NSEIX was set up at GIFT City in 2017 and is recognised by the International Financial Services Centres Authority. NSEIX and GIFT Nifty have received exemptions and regulatory relief that allow US customers to participate in derivative contracts listed on the exchange.

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