Global market maker Clearstream is working with Indian authorities and banks to develop an access model to further increase Indian securities trading such as Eurobonds across its global markets.

The Luxembourg-based Clearstream today allows its 2,500 customers in 110 countries to access 54 domestic markets globally via its network of settlement links. Vice versa, issuers in any of those markets can seek for global investor access via the Clearstream network, an executive committee member of the clearing house, Berthold Kracke, said today.

“Our role is to support local market development by bringing issuers and investors together,” Mr Kracke, who visited India last week, said.

“We are working with the Indian regulators, exchange groups and banks to help meet financing needs to fund important investment in areas such as infrastructure where broadening investor access is ultimately very important,” he said.

The Indian banks are likewise increasing participation in international securities trading, he added.

“It is our strategy to help Indian banks participate in global securities trade,” stressed Kracke.

“However, our role is to support the market and to develop an access model that all local Indian stakeholders are most comfortable with. The authorities and the market will decide when they are ready — the regulators already indicated to go for a phased approach, which is common in evolving markets and makes a lot of sense,” Kracke pointed out that therefore the full benefits of access to international capital markets would also only come over time.

“Demand for Indian securities is picking up with more and more financial institutions expressing keen interest in the Indian economy. This interest is based on the stated aim of the government for further Internationalisation,” he observed.

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