The NSE (National Stock Exchange of India) and Nasdaq (National Association of Securities Dealers Automated Quotations) have reportedly tied up to explore business opportunities across listings, corporate, market services as well as data and innovations in products, processes, and technology.
NSE managing director and CEO Vikram Limaye said that that Nasdaq’s venture fund invests in companies with technologies that are often deployed for its own use. With this, the NSE may jointly invest with Nasdaq in India, Israel, or Silicon Valley startups.
According to reports, Nasdaq has also signed an MoU with the NSE to develop a customised real-time clearing, risk management, and settlement technology for the NSE.
This new post-trade technology will replace the NSE’s existing clearing and settlement system, operated by the National Securities Clearing Corporation Ltd (NSCCL), its wholly owned subsidiary.
The agreement will be executed over the next 24 to 36 months.
In addition to this post-trade agreement, Nasdaq has also signed an agreement with the NSEIT to utilise its capabilities in implementing project augmentation globally.
“The continuously evolving market needs products and effective risk management tools, which require us to continue to evolve our delivery models,” Vikram Limaye said.
Nasdaq president and CEO Adena Friedman said, “We will use this new partnership to bring Nasdaq’s premium market technology to the Indian capital market and to explore new opportunities for collaboration across each other’s businesses particularly around listings, corporate services and our market services.”
Also, Friedman informed that the exchange provides technology to about 100 marketplaces, regulators, clearinghouses, and central securities depositories across the world, but it will customise solutions for the NSE, which will not be available to other exchanges.
The development comes at a very crucial time in the Indian startup ecosystem as many startups are looking to go public and are in the process of launching initial public offerings (IPOs). Recently, online marketplace IndiaMART filed Draft Papers for its IPO while etailer SaleBhai received in-principle approval from the BSE for its draft prospectus.
We also had players like E2E networks, which made a rockstar IPO debut, and the Newgen IPO, which was subscribed 4.28 times on the last day and received bids for 5.23 Cr shares against the total issue size of over 1.22 Cr scrips.
[The development was reported by PTI.]