NSE, LSE ink deal on dual listing route for masala bonds
The London Stock Exchange Group on Friday announced a new memorandum of understanding with the National Stock Exchange of India to cooperate on dual listings and the launch of the group’s offerings in India.
London Stock Exchange (LSE) said the MoU is aimed at working together with the National Stock Exchange (NSE) on creating a dual listing route for Masala bonds and explore the launch of ELITE, LSE group’s business support and capital raising programme for private high-growth companies, in India next year.
The MoU was signed in London by Vikram Limaye, MD & CEO of the NSE, and Nikhil Rathi, CEO, London Stock Exchange Plc, and witnessed by MK Das, principal secretary to the chief minister of Gujarat Vijay Rupani.
“Dual listing of Masala bonds would enhance visibility, increase liquidity 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,” said Limaye.
Describing India as one of the world’s fastest growing econo-
LONDON:
mies, with investors across the world are keen to invest in India and benefit from its growth story, he added that the new partnership would strengthen the capital markets in both countries and enhance global awareness of the opportunities that exist in India.
Limaye said: “NSE has focused on developing an ecosystem where SMEs (small and medium enterprises) can showcase their growth stories and launched EMERGE platform for the SMEs in India to raise equity funding. By jointly launching ELITE in India, we aim to enhance our offerings for the SMEs by providing training, support and capacity building for these growth companies.
“ELITE will bring a more in-depth and formalised process to help SMEs scale up their businesses and integrate them with the global ELITE community.”