India’s leading stock exchange, National Stock Exchange of India Limited (NSE) signed a Memorandum of Understanding (MoU) with Confederation of Indian Textile Industry (CITI). NSE will assist in imparting knowledge to CITI members on price risk management, hedging on NSE’s platform for products like Commodity, Currency, Debt and assist CITI members in raising equity capital through NSE’s EMERGE platform. An MoU was signed by Ravi Varanasi, Chief Business Development Officer, NSE and Sanjay K Jain, Chairman CITI at the 60th AGM of CITI at Mumbai.
NSE has recently got the approval from SEBI to launch commodities derivative segment. This association will help NSE in reaching out to various member associations of CITI like The Southern India Mill Association, Ahmedabad Textile Association, Madhya Pradesh Textile Mill Association, Maharashtra Mill Association, Northern India Textile Association and Rajasthan Textile Mill Association.
NSE and CITI recognise the importance of the development of the members of CITI and to foster greater cooperation between the two entities and enable to work more closely on a number of shared goals. NSE shall play an active role in nurturing the association members on the opportunities to raise capital through NSE EMERGE platform. NSE will facilitate association members on capital markets, capital raising mechanism and regulatory compliances and requirements. NSE will create awareness among members of the Association in relation to NSE’s offerings on equity, mutual funds, bonds, government securities and others.
On this occasion, Ravi Varanasi, Chief Business Development Officer, NSE said “MoU with CITI is significant as NSE is venturing into the commodities market soon. We extend our complete support in raising awareness levels for products like Currency, Commodity, Debt and helping companies to manage their risks & also to assist CITI members in raising equity capital on NSE’s EMERGE platform. Indian Textile Industry is the only industry that has generated huge employment for both skilled and unskilled labour. NSE will jointly conduct awareness and educative programmes for members of CITI and other relevant stakeholders through various road-shows and webinars.”
Sanjay K Jain, CITI chief said, “India’s textiles sector as one of the oldest industries in Indian economy dating back several centuries. India's overall textile exports during FY 2017-18 stood at $39.2bn. We are delighted to sign MOU with the largest stock exchange of India NSE. The need for awareness creation among the members of CITI about the various platforms available on National Stock Exchange for price risk management and hedging their commodities, Currency & Interest rate risk. He stressed for the awareness for NSE’s EMERGE platform for raising equity capital as an effective alternative for raising capital.”