The Moscow Exchange (MOEX) is expanding its reach once again. The Russian exchange has announced that a memorandum of understanding (MoU) has been signed with two of India’s leading stock exchanges.
They are the BSE (which was formerly known as the Bombay Stock Exchange) and India INX, which is a subsidiary of the BSE. This is the first MoU that has been signed between Indian and Russian exchanges.
This landmark agreement is a big move for MOEX. This can potentially lead to more Russian investment into the Indian subcontinent and provide MOEX with a better understanding of the Indian market. This is in accordance with the stated goals of MoU.
The hope is that the interaction between exchanges would help in encouraging further collaboration between Indian and Russian exchanges. The new MoU has been dubbed as the India-Russia Initiative. With a better bridge of understanding being established between the two countries, there is hope that investors and companies of both countries will come to work together and form future partnerships.
The MoU was signed at a ceremony during the annual Exchange Forum in Moscow where the CEOs of both companies Ashishkumar Chauhan for BSE and Alexander Afanasiev for MOEX were present.
Better Opportunities For Russian And Indian Investors
One of the more interesting parts of the MoU, is that the participating exchanges have agreed to temporarily exchange senior personnel between each exchange. This would allow the senior leadership to better understand the challenges of each other’s markets.
In a statement, CEO Chauhan said
BSE, India Inx and MOEX are collaborating together to facilitate the development of channels of communication. We strongly believe together we would foster a continuing relationship for the benefit of the financial services industry in India and in Russia.
Besides having an officer exchange, there will also be a planned joint research effort between the three exchanges. The aim is to look into potential cooperation in multiple areas. For example, the exchanges may think about proceeding with the cross-listing of several financial products including exchange-traded funds (ETFs). This can potentially lead to multiple investment opportunities for Russian and Indian investors.
All three exchanges are hoping that their cooperation will lead to further bilateral investment. Expanding into a new country in terms of investments is always less risky with the right information, which is what the MoU is meant for as it will give investors from both countries more security.