NSE International Exchange, FIDC partner to deepen capital market access for NBFCs

NSE International Exchange (NSEIX), a wholly-owned subsidiary of the National Stock Exchange of India, has entered into a strategic partnership with the Finance Industry Development Council (FIDC) to strengthen capital market access for non-banking financial companies (NBFCs) in GIFT IFSC. FIDC is a self-regulatory organisation for NBFCs recognised by the Reserve Bank of India (RBI).

Under the collaboration, NBFCs will be facilitated to raise funds through the NSEIX platform, including the listing of NBFC-related debt and other financial instruments. NSEIX operates as an international multi-asset exchange in GIFT City. The partnership seeks to enable access to a wider range of debt and equity products through the IFSC ecosystem, supporting the long-term and perpetual funding requirements of NBFCs.

Commenting on the development, V Balasubramaniam, MD & CEO of NSE IX, said, "NSEIX is delighted to partner in this strategic alliance with FIDC to enable seamless access to NBFC's facilitate fundraising opportunities for NBFCs through GIFT IFSC. By leveraging our platform and FIDC's deep connects we aim to provide new avenues for NBFCs and facilitate access to capital, enhanced liquidity, and supporting their expansion."

Mahesh Thakkar, Chairman at FIDC, said, "Proving this platform through NSEIX and signing of MOU by FIDC with NSEIX will give NBFCs with global growth aspirations the Choice of Capital, Currency, Instruments, Structures and most importantly choice of long-term thinking and planning. NBFCs can now explore foreign currency borrowings with better tenor alignment, international bond issuances, structured debt instruments, access to global institutional investors, equity and quasi-equity options in the IFSC ecosystem. For NBFCs thinking about perpetual funding needs, this is significant. Because capital is not just money, capital is confidence."

Separately, attention remains on NSE's proposed initial public offering (IPO). The exchange has been working towards a listing for several years. In a recent development, capital markets regulator Sebi granted in-principle approval to NSE's application in the unfair market access case, addressing a key regulatory requirement linked to its IPO plans.

In addition, Sebi Chairperson Tuhin Kanta Pandey said the government has approved a reduction in the minimum public shareholding requirement for large companies at the time of listing to 2.5 per cent from 5 per cent.

NSE is India's largest stock exchange. While regulatory and governance issues had earlier delayed its listing, recent regulatory clearances indicate progress in efforts to reach the primary market.