Shearman & Sterling LLP has represented Norwest Venture Partners in its acquisition of 2.11% of the National Stock Exchange (NSE) of India from IL&FS Securities Services Limited for approximately Rs 250 crore (approximately US$50.5 million). The deal values the NSE at approximately Rs 12,000 crore (approximately US$2.55 billion).

In October 2008 the Ministry of Finance clarified that foreign institutional investors (FII) could hold up to 23% of the equity in an Indian exchange, even where the exchange was unlisted. Commenting on the transaction, Sidharth Bhasin, counsel in the Firm’s India practice, said, “Norwest Venture Partners’ acquisition is the first investment in the NSE under the FII route and it will pave the way for other FIIs that are looking to do similar deals in this space.”

The National Stock Exchange is India's largest exchange and ranks third globally by number of trades in the equities market. Norwest Venture Partners is a global, multi-stage investment firm that manages more than US$2.5 billion in capital out of its offices in Palo Alto, California, Mumbai and Bangalore, India and Herzelia, Israel.

Partner Paul Strecker (Hong Kong–M&A) and counsel Sidharth Bhasin (Hong Kong–M&A) led the Shearman & Sterling team, assisted by associate Joseph Tong (Hong Kong–M&A/Project Development & Finance) and trainee Matthew Brown (Hong Kong–Project Development & Finance).