The ringing the bell ceremony on 17 November with LuxSE CEO Robert Scharfe and deputy CEO and LGX founder Julie Becker (left) and (on screen) Luxembourg ambassador to India Jean Claude Kugener and V. Balasubramanian, India INX CEO
The Luxembourg Stock Exchange (LuxSE) announced on Thursday it had signed two cooperation agreements with Indian counterparts, aiming to unite investors and issuers around UN SDG and Paris Agreement targets.
Linked to the first e-summit between Luxembourg and India--which saw Luxembourg prime minister Xavier Bettel meet virtually with his Indian counterpart, Narenda Modi--LuxSE has signed agreements with the State Bank of India (SBI) and the India International Exchange Limited (India INX).
“Through these two milestone agreements with SBI and INX, we enter the Indian market to bring international investors closer to Indian issuers, and build strong and mutually beneficial relationships with Indian market participants, particularly in the green sphere,” said LuxSE Robert Scharfe.
As part of discussions between Bettel and Modi, the two welcomed the signing of the MoUs, and from the grand duchy’s perspective, an agreement between Luxembourg’s CSSF and its regulatory counterpart in India, the Securities and Exchange Board of India, would enhance financial sector cooperation. Bettel noted that the grand duchy could serve as a bridge in connecting India’s financial sector to European investors, and beyond.
Part of the discussions between the pair also centred on enhanced cooperation on sustainable development and a focus on climate change. The MoU’s signed by LuxSE and its Indian counterparts nod to this, as they aim to promote green finance and ESG in India.
Calling the pact “very special”, India INX MD and CEO V. Balasubramanian added, “We believe we can provide issuers and investors with an opportunity to list and trade green bonds on our platform GSM Green with the opportunity to dual list with the Luxembourg Stock Exchange, which is the largest green bond listing platform with exceptional governance standards. We envisage this pact will strengthen ties between the two countries and encourage more green funding, which is in line with the Government of India’s initiative of sustainable development.”
LuxSE counts 37,000 listed securities from 2,000 issuers in 100 countries. Its Luxembourg Green Exchange, launched in 2016, became the first of its kind in the world. Last month, it was awarded a prize by United Nations Climate Change in the category of financing for climate friendly investment.