To access and trade Indian interest rate risk via underwriting and distributing government bonds as well as trading in local currency interest rate swaps
Nomura Fixed Income Securities (NFIS), a division of Nomura, Japan-based financial services group, has been granted a primary dealer license by the Reserve Bank of India.
Reportedly, NFIS will permit Nomura to access and trade Indian interest rate risk via underwriting and distributing government bonds as well as trading in local currency interest rate swaps. The newly launched interest rate futures contract as well as the introduction of a STRIPS market is expected to complete the width of products available to clients. The company has stated that this will complement Nomura’s role in trading these sets of products in other markets in Asia, including Japan and Korea.
Vikas Sharma, president and CEO of Nomura India, said: “The primary dealer license will enable our strong fixed income team to leverage their expertise for the benefit of our clients in the Indian market, where we offer clients end to end financial solutions. This important milestone in the build out of Nomura’s Indian operations adds significant fixed income activities to our burgeoning franchises in equities, investment banking, and asset management.”
Pankaj Vaish, head of equities and fixed income, liquid markets for Nomura India, said: “India is a very important market for Nomura. That is why we are launching our fixed income business with a very strong team that had a large market share in the past. NFIS will be Nomura’s flagship entity in India to pursue trading and client related activities in the Indian fixed income market.”
Tarun Jotwani, head of global fixed income for Nomura, said: Nomura has been actively building its global fixed income franchise as it transforms into a top global investment bank. In a very short period of time we have built tremendous momentum in our fixed income businesses across Europe, the USA and Asia, in addition to our dominant Japanese franchise. Obtaining a primary dealership in India is a further step towards deepening our fixed income market presence in Asia.”