The Depository Trust & Clearing Corporation (DTCC), the world's largest depository based in New York, has signed separate agreements with the National Securities Depository (NSDL) and the CentralDepository Services (CDSL), India's two leading depositories, for information sharing and to exchange clearing and settlement data.The deals signed by DTCC, which provides custody and asset servicing for 2.8 million security issues from the United States and 100 other countries and territories valued at $36 trillion, is the first of this sort by a global depository company in India.The pacts also gains importance in view of the recent government regulations allowing foreign players to pick upto 26% in stock market infrastructure companies such as domestic depositories.The financial sector, including stock exchanges and brokerages, are attracting huge foreign interest for strategic investment. Industry experts feel global players are already exploring opportunities to investin depositories."The parties anticipate developing a closer working relationship in the future and wish to maintain channels of communication for exchange of information and to promote visits for reasons of friendship and other business purposes," releases issued by NSDL and CDSL said.Following the memorandum of understanding (MoU), the executives of the corresponding depositories will meet on regular basis to increase mutual understanding, exchange market updates, improve opportunities and information on business operating models."India is one of the fastest growing areas of the world, and CDSL and NSDL are a major part of the securities infrastructure in the country. These agreements will give us a structure to exchange ideas, share market insights and develop coordinated ways of working with each other in what is rapidly becoming a global trading environment and ultimately benefiting investors through a safe and reliable global securities infrastructure," Donald F Donahue, chairman-elect and chief executive officer, DTCC was quoted as saying."We believe that forming closer ties with DTCC will work towards the prosperity of our respective financial markets and build understanding and cooperation. The mutual exchange of informationon our business operating models and service offerings will bring enormous benefits to our customers and markets," C Bhave, CMD, NSDL, said."The MOU with DTCC is an extension of the good relations that CDSL shares with them. I see it as an initial formal handshake, the beginning of a long and mutually beneficial business relationship," Vijay Raut, CDSL managing director and CEO said.
