The London Stock Exchange and Russia's two main exchanges, Micex and RTS, are vying to secure a strategic partnership with the Kazakhstan Stock Exchange, the Financial Times reported on Tuesday.

The newspaper cited the exchange's chief executive Kadyrzhan Damitov as saying the LSE and the two main Russian exchanges had submitted proposals for the provision of trading systems and other collaboration.

If we are talking about the LSE proposal some technical matters have to be clarified and some legal issues are also very important. It's not an easy task, even without some political and strategic issues, Damitov was quoted as saying in the article.

Damitov said that other unnamed companies had submitted proposals for the Kazakh exchange.

He added that as part of a two-year development strategy' the Kazakh exchange would modernise its trading system and introduce an obligation for companies wanting to list that they sell at least 20 percent of their shares on the exchange before going for a foreign listing.

The Kazakh exchange is preparing for the launch of a people's IPO scheme designed to persuade Kazakh citizens to invest in a wave of big privatisations and revive dwindling activity on the exchange, according to the article.

The Kazakh stock index has fallen by 34.5 percent this year as some of its biggest companies have sought listings in London.

(Reporting by Stephen Mangan; editing by Carol Bishopric)