Euroclear is teaming with two Indian central depository services for equities ahead of a potential launch of cross-border settlement services for Indian securities.

The memorandum of understanding (MoU) between the European depository bank and its Indian counterparts aims to boost cooperation between the three organisations.

Central Depository Services (India) and National Securities Depository (India) will, with Euroclear, also explore the possibility of establishing an operational link between the central securities depositories.

Ignace Combes, deputy chief executive officer of Euroclear, says the Indian market offers tremendous potential, as it continues to develop and attract global investors. "When we offer services for domestic securities, we ultimately create a link - either directly or indirectly - with the local central depository. Euroclear bank wants to develop a solid relationship with the Indian depositaries for when the Indian domestic market becomes eligible for international investor trading in the local rupee currency," he says.

The three firms will exchange staff to increase knowledge of the respective securities markets and the various risk-management practices.

A similar memorandum was signed by Euroclear and the Clearing Corporation of India in January 2007, for bond transactions.

Domestic securities from eight Asia-Pacific markets are currently eligible for settlement, custody and related services at Euroclear Bank. Euroclear is the worldÆs largest provider of domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions, settling $665 trillion worth of transactions annually.