The Colombo Stock Exchange (CSE) and NSE IFSC LIMITED (NSEIX), an international multi-asset exchange and wholly owned subsidiary of the National Stock Exchange of India Limited, signed a Memorandum of Understanding (MoU) recently to strengthen capital market cooperation between Sri Lanka and India. Bringing together the senior leadership of both exchanges to formalise a strategic partnership, the occasion underscored the shared commitment of both institutions to building a more integrated regional financial ecosystem that benefits companies and investors in both exchanges.

Under this arrangement, both institutions will work towards introducing dual listings and cross listings, which will enable companies to list the same shares on both exchanges simultaneously, or to establish a presence on both markets through separate listings. Dual listings and cross listings offer listed companies a greater opportunity to increase liquidity through a broader and more diverse investor base and significantly enhance visibility among institutional and retail investors in both Sri Lanka and India. For companies in particular, access to India's vast and deep capital markets could prove transformative in terms of growth financing and brand recognition.

Beyond listings, both the CSE and NSEIX have committed to working together to develop new financial products tailored to the needs of cross-border investors, reflecting the evolving sophistication of both markets.

The MoU also aims to enable bidirectional trading opportunities, giving investors in Sri Lanka and India access to each other's markets. Furthermore, the Exchanges have agreed to undertake joint research initiatives, training programs, capacity building exercises, and outreach efforts for the mutual benefit of both institutions and the wider investment communities they serve.

Photograph - (L-R): Parties to the MoU signed at GIFT IFSC Global Securities Markets Conclave 2.0:  Mr. Chetan Shah, Head of Capital Markets - Axis Bank Mr. Neeraj Kulshrestha, MD & CEO – NSE International Clearing Corporation; Mr. Balasubramaniam Venkataramani, MD & CEO – NSEIX; Mr. Kosala Gamage, Director – CSE; Mr. Rajeeva Bandaranaike, CEO – CSE; Ms. Punyamali Saparamadu, SVP – CSE; Ms. Hetal Kotak, Head of Listings – NSEIX.