The New York-based company claims that the definitive equity interest agreement for five per cent of the shares in India's largest financial marketplace will "complement" its global growth strategy.
Five per cent is the largest permitted stake by a foreign investor under Indian securities law and the $115 million cash deal sees NYSE purchase shares from a consortium that includes Industrial Finance Corporation of India, Punjab National Bank and General Insurance Corporation of India.
John A Thain, NYSE Group chief executive officer, stated: "Through a mutually beneficial partnership, the NSE and NYSE Group, and the future NYSE Euronext, will extend our global reach, strengthen relationships with customers, and advance our competitive position in India and throughout the region."
The transaction is expected to reach completion during the first quarter of this year, following government approval, and an officially signing ceremony has taken place in Delhi, India, attended by officials from both companies.
The deal with Mumbai-based NSE follows similar purchase deals between the Indian exchange and Goldman Sachs, General Atlantic and Softbank.
NYSE is currently completing a merger agreement with the Euronext bourse to create a new global financial exchange.