The National Stock Exchange International Exchange (NSE IX) at GIFT City has signed a memorandum of understanding (MoU) with the London Stock Exchange (LSEG) to enhance market opportunities for investors and deepen capital market connectivity between India and the UK.
- The MoU aims to enable cross-listings of equity, fixed income, and ETF products between NSE IX and LSEG.
- New financial products, including derivatives based on FTSE Russell indices, will be developed and listed on NSE IX.
- The collaboration will explore joint development of equity indices, cross-border trading connectivity, and market data sharing.
- The partnership is part of the India-UK Comprehensive Economic and Trade Agreement (CETA) to strengthen financial services integration.
- All trades on NSE IX are mainly US dollar-denominated, allowing Indian investors access to global financial assets.
What is the significance of the MoU between NSE IX and the London Stock Exchange?
The MoU signed on October 13, 2026, between NSE IX and the London Stock Exchange aims to create new opportunities for investors by enabling cross-border trading and listings. This collaboration is expected to increase liquidity and expand the investor base by connecting two major capital markets.
How will Indian investors benefit from this collaboration?
Indian investors will gain access to a wider range of financial products, including existing products on the London Stock Exchange and new products developed jointly, such as derivatives based on FTSE Russell indices. This will provide more diversified investment options and exposure to global markets.
What products will be involved in the cross-listings?
The MoU covers cross-listings across various financial products including equities, fixed income securities, and exchange-traded funds (ETFs). The collaboration also plans to develop new equity indices and trading products to be listed on NSE IX.
How does this MoU relate to the India-UK Comprehensive Economic and Trade Agreement (CETA)?
The partnership between NSE IX and LSEG is a direct outcome of the India-UK CETA, which aims to enhance capital market connectivity and financial services integration between the two countries. This agreement supports the broader goal of opening new avenues for trade and investment.
What is NSE IX and how does it operate?
NSE IX, or NSE IFSC Limited, is a wholly owned subsidiary of the National Stock Exchange of India. It operates an international stock exchange located at GIFT City in Gandhinagar, Gujarat. Trades on NSE IX are mostly conducted in US dollars, allowing Indian investors to access global financial assets. The exchange also offers GIFT NIFTY futures, which provide market cues ahead of the NIFTY50 opening.
What has been the market reaction to this announcement?
Following the announcement, NSE shares listed on the Bombay Stock Exchange rose by 1.5% to an intraday high of ₹1,780 on October 14, 2026. Over the past five days, NSE shares have increased by 2.2%. The company was recently listed on the stock exchange in September 2026, with a market capitalization of ₹4.36 lakh crore as of October 14.
Frequently Asked Questions
Q: Will Indian investors be able to trade London Stock Exchange products directly?
A: The MoU indicates plans to make certain existing financial products on the London Stock Exchange available to Indian investors through NSE IX, but specific details have not yet been disclosed.
Q: What currency are trades conducted in on NSE IX?
A: Trades on NSE IX are largely US dollar-denominated, facilitating access to global financial markets for Indian investors.
Q: How does this collaboration affect liquidity in the markets?
A: By connecting NSE IX and LSEG, the collaboration is expected to increase liquidity and expand the investor pool, benefiting both markets.
