Nomura, Morgan Stanley set to roll out currency market services in India

The skyline in Mumbai. Photographer: Dhiraj Singh/Bloomberg

Nomura Holdings Inc. and Morgan Stanley are set to launch currency market-making services in India, according to people familiar with the matter, in what would be the first foreign presence in the industry.

Nomura Fixed Income Securities Ltd. recently approved the initiative for its Indian primary dealership and to roll out the service in the next few weeks, according to the people. Morgan Stanley India Primary Dealer Private Ltd. is also close to implementing the service, said the people, all of whom asked not be named discussing a private matter.

Both companies didn’t immediately respond to emailed requests for comment.

The firms’ planned new operations would mark the first foray by foreign banks into a key market-making business that oils foreign exchange transactions, two years after the country’s central bank issued the relevant approval. The development comes as global banks look to expand their presence in India, where currency transactions are expected to grow following the country’s entry into a major world bond index earlier this year.

Over the past couple of years, Morgan Stanley and Nomura have been building systems to comply with the Reserve Bank of India’s strict reporting norms, the people said.