Colombo / Chennai, April 2018: The Colombo Stock Exchange (CSE) and the National Stock Exchange of India Limited (NSE) have signed a memorandum of understanding (MoU) focused on exploring opportunities to work together and co-operate with each other to foster a deeper and more strategic relationship. The MoU was signed at the CSE today by CSE Chairman Mr. Ray Abeywardena and Mr. Vikram Limaye, Managing Director and Chief Executive Officer, NSE.
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.
Commenting on the MoU, CSE Chairman Mr. Ray Abeywardena said “The move formalizes and paves the way to strengthen what is already a strong relationship of collaboration between the CSE and NSE. The new avenues for cooperation created as a result of this MoU will add value to the Sri Lankan capital market. 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.”
Mr. Vikram Limaye, Managing Director and Chief Executive Officer, NSE commenting on the MoU 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. India is one of the fastest growing markets in terms of investor participation and volumes. 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. NSE and CSE have collaborated over the years and I am confident that this MoU will take the relationship to the next level and would benefit capital markets in both the countries.”
NSE is the leading stock exchange in India and the third largest in the world by nos. of trades in equity shares in 2017 (World Federation of Exchanges report). NSE has developed, owns and manages the NIFTY 50 index, a leading benchmark for the Indian capital markets. It offers comprehensive coverage of the Indian capital markets across asset classes, including equity, fixed income and derivative securities. Currently there are ~1850 companies listed on NSE with market cap of USD 2.2 trillion+. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings.
CSE is the nucleus of Sri Lanka’s capital market as the licensed operator of the stock market. CSE is regulated by the Securities and Exchange Commission of Sri Lanka and was incorporated as a company limited by guarantee in 1985. CSE acts as a conduit of both equity and debt capital and provides the necessary market infrastructure to buyers and sellers in order to transact.