LSE keen to collaborate with local capital market
View(s):The London Stock Exchange (LSE) is keen to partner its Sri Lankan counterpart in various areas in the local capital markets, a top LSE official said. ”The LSE is used to partnering with other exchanges such as National Stock Exchange of India (NSE) in devising new products for their capital market, etc. We are also used to partnering with many other exchanges on dual listings. Similarly we’re interested in partnering the CSE in developing Sri Lanka’s capital market,” Jasmine Arora, Head of India, Africa and Middle East for Primary Markets – Equity and Debt for LSE told the Business Times recently.
She was here for a brief visit to meet with the Treasury, the CSE and the Central Bank along with some top corporates. Her visit follows LSE Group inking a deal recently to shift part of its technology and business functions here. The new company, London Stock Exchange Business Services Colombo Ltd has already hired 60 highly skilled staff and is aiming to up this to 400. Ms. Arora recalled that the multi-dimensional MoU that the LSE signed with the National Stock Exchange of India (NSE) ensures close collaboration between the two exchanges as they work towards setting up a joint research centre.
The MoU also covers subsidiaries of NSE, with the objective of harnessing mutual synergies across various NSE and LSE initiatives, she said. The LSE is also interested in similar agreements with the CSE, she added. Ms. Arora said that she had discussions with the local institutions in order to better understand Sri Lanka’s regulatory landscape. She added that the LSE always encourages firms in emerging markets to go public in the LSE. The LSE’s institutional investors account for approximately 65-70 per cent of the investor base in the UK. Ms. Arora added that more international companies choose London for listing than any other exchange.
“Over 40 per cent of all major exchange listed international companies are listed on LSE.” London remains the world’s main equity market, with more international assets under management than any other global financial centre, she said adding that companies listed in London are able to access overseas investors through widely used and well understood capital raising routes. ”LSE has access to the deepest pool of international capital in the world”. - DEC