NSE Official Suggests Russian Bank Entry into GIFT City to Boost Listings and Capital Flows

National Stock Exchange Seeks to Boost India-Russia Financial Engagement

The National Stock Exchange (NSE) is pushing for a significant increase in financial engagement between India and Russia, with its Chief Business Officer, Sriram Krishnan, emphasizing the need for a Russian banking presence in GIFT City as a crucial first step to enable cross-border capital flows and listings.

Krishnan identified the absence of on-ground financial infrastructure as the key missing link in scaling bilateral market activity. He called for one of the Russian banks to set up an office in GIFT City, which could help bridge the gaps in currency, settlement, and regulatory frictions that have limited capital market participation between the two countries.

A Russian banking presence in GIFT City could enable smoother fund flows, custody, and transaction settlement, creating opportunities for Russian companies, including those with subsidiaries operating in India, to explore raising capital locally through rupee-denominated instruments. This could also unlock valuation outcomes that may not be available elsewhere, as seen in the case of Suzuki Motor Corporation, which derives roughly half its revenues from India.

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Krishnan also highlighted the potential for Russian investors to target India's broader opportunity set, including mid-market companies and startups, as well as the underexplored avenue of fixed income through cross-border bond listings facilitated by GIFT City.

To translate these ideas into flows, Krishnan suggested the creation of a joint working group involving stakeholders from both countries to articulate requirements and facilitate approvals. He expressed optimism about the trajectory of engagement, pointing to steady dialogue between the two sides and the absence of major disagreements in recent years.

Key Opportunities and Initiatives

• Russian companies to explore raising capital locally through rupee-denominated instruments
• Russian investors to target India's broader opportunity set, including mid-market companies and startups
• Cross-border bond listings facilitated by GIFT City
• Creation of a joint working group to articulate requirements and facilitate approvals

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Outlook

Krishnan expressed confidence that momentum would carry into 2026 and beyond, with the potential for significant growth in financial engagement between India and Russia.