Colombo Stock Exchange in Sri Lanka strikes deal with National Stock Exchange of India Limited
The Colombo Stock Exchange (CSE) of Sri Lanka and the National Stock Exchange of India Limited (NSE) have reportedly entered into an agreement to explore opportunities to work together and co-operate with each other.
The local media has reported that a memorandum of understanding (MoU) signed between the two parties aims to foster a deeper and more strategic relationship.
The NSE is the leading stock exchange in India and the third largest in the world by numbers of trades in equity shares in 2017.
The CSE has said in a statement that the MoU calls for cooperation on the exchange of information and expertise and also paves the way for NSE to play a consultative role in a number of strategic initiatives implemented by the CSE, including in the area of new product development and exchange operations.
The MoU was signed at the CSE Tuesday by CSE Chairman Ray Abeywardena and Vikram Limaye, Managing Director and Chief Executive Officer, NSE.
“The move formalizes and paves the way to strengthen what is already a strong relationship of collaboration between the CSE and NSE,” Abeywardena has been quoted as saying.
“NSE is a leading stock exchange in the region and is in prime position to offer valuable perspective and guidance to the CSE, as we pursue growth initiatives to further develop the exchange and build on our strengths.”
Limaye meanwhile has said NSE has built world class market infrastructure solutions across asset classes that could service requirements of the entire spectrum of investors from retail to institutional to traders.
“Market eco-systems in South Asia have significant commonalities and collaboration between NSE and CSE could leverage NSE’s experience in building robust markets to provide further impetus to the growth of Sri Lankan capital markets.”
OSL take:
The MoU between the CSE and the NSE to create opportunities to work together would further boost trade and investments between Sri Lanka and India. The strong collaboration between the two stock exchanges would build investors confidence that would undoubtedly result in an upward push in both stock markets. Foreign investors already in the CSE in Sri Lanka could use its strong ties with India’s NSE to venture into the Indian market as well.
| Article Code : | VBS/AT/06042018/Z_1 |