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

OVERVIEW

• NSE IFSC Limited (NSE IX), the international exchange at GIFT IFSC, Gandhinagar, and London Stock Exchange plc (LSE) have signed a Memorandum of Understanding (MoU) to explore strategic collaboration between the two exchanges. The MoU was announced on 13 October 2026.
• The MoU sets out a broad framework to drive cross-border growth and create innovative listing and trading opportunities for issuers and investors in both India and the United Kingdom.
• The collaboration has its roots in the India–UK Comprehensive Economic and Trade Agreement (CETA), which aims to open new avenues for capital markets connectivity and financial services integration between London and India.
• The initiative represents a potential step towards strengthening GIFT City's position as an international financial services hub.

KEY AREAS OF COLLABORATION

• Listings: Dual and cross-listings across products, including equity, fixed income and exchange-traded funds (ETFs).
• Products: Exploring opportunities to trade existing financial products and develop new products, including derivatives proposed to be listed on NSE IX with FTSE Russell indices as the underlying reference.
• Indices and data: Joint development of new equity indices and distribution of market data.
• Connectivity: Exploring cross-border trading connectivity between the two exchanges to facilitate bidirectional trading, potentially enhancing market liquidity and expanding the investor base.

HOW CROSS-LISTED ETFs WOULD DIFFER FROM EXISTING FUNDS

• Investors would be able to buy and sell ETF units on the exchange during trading hours at market-determined prices, providing greater flexibility and control over transactions.
• GIFT City Funds are generally pooled investment vehicles where investment decisions are managed by fund managers, with subscriptions and redemptions governed by the fund's terms.
• 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.

CONCLUSION

• The MoU between NSE IX and LSE marks an important step towards strengthening international capital market connectivity through GIFT City IFSC.
• The proposed initiatives could broaden investment opportunities, support cross-border listings and encourage the development of new financial products.