In a major boost for India’s non-banking financial sector, NSE International Exchange (NSE IX), a wholly-owned subsidiary of the National Stock Exchange (NSE), has inked a pivotal Memorandum of Understanding (MoU) with the Finance Industry Development Council (FIDC). Announced on Wednesday from New Delhi, this partnership aims to empower Non-Banking Financial Companies (NBFCs) with seamless access to capital raising opportunities at the GIFT IFSC.
FIDC, serving as the self-regulatory organization for NBFCs, plays a crucial role in fostering growth and oversight within this dynamic sector. The collaboration leverages NSE IX’s robust platform in GIFT City, an international multi-asset exchange, to simplify fundraising for NBFCs. This includes listing debt instruments and other financial products, providing a gateway to modern debt and equity offerings.
The move addresses long-term funding needs of NBFCs by enhancing their reach to innovative products. V. Balasubramaniam, MD and CEO of NSE IX, emphasized that this alliance will unlock fresh avenues for capital, superior liquidity, and expansion support through NSE IX’s infrastructure and FIDC’s extensive network.
Mahesh Thakkar, Chairman of FIDC, hailed the day as historic for Indian NBFCs. He highlighted how the platform offers freedom in choosing capital, currency, financial instruments, and long-term strategies, particularly for firms eyeing global expansion. NBFCs can now tap foreign currency debt, issue international bonds, structured debt instruments, and connect with global investors via equity and quasi-equity options.
Thakkar further noted that for NBFCs requiring continuous funding, this platform is indispensable. ‘Capital isn’t just money; it’s confidence,’ he asserted.
Established on June 5, 2017, in GIFT City and recognized by the International Financial Services Centres Authority (IFSCA), NSE IX commands over 99.7% market share in GIFT IFSC. It offers investors a wide array including Indian stock derivatives, index derivatives, currency derivatives, depository receipts, and global stocks. The exchange also facilitates primary market products like equity shares, SPACs, REITs, InvITs, debt securities, and ESG-based bonds.
This strategic tie-up is set to reshape funding landscapes for NBFCs, positioning them competitively on the global stage while bolstering India’s financial ecosystem in GIFT City.