Singapore Exchange logo

S68 - Singapore Exchange News Story

S$10.24 -0.2  -1.8%

Last Trade - 05/05/21

Large Cap
Market Cap £5.91bn
Enterprise Value £5.68bn
Revenue £590.3m
Position in Universe 278th / 6095

UPDATE 1-India's NSE and Singapore Exchange win approval for joint derivatives project

Tue 6th August, 2019 5:41pm
* Connect to create large pool of liquidity in GIFT City
    * Exchanges working to end arbitration proceedings between
    * NSE CEO hopes all SGX Nifty volume to move to GIFT in

 (Adds quote, background, writes through)
    By Abhirup Roy
    MUMBAI, Aug 6 (Reuters) - India's National Stock Exchange
(NSE) and the Singapore Exchange (SGX)  SGXL.SI  have been given
the go-ahead for a planned collaboration in trading stock
index-based products from an international financial centre
being developed in western India.
    The two said on Tuesday they had won regulatory approval for
their plan, which has been under discussion for months and which
envisages bringing trading of the SGX's Nifty futures contract,
based on the NSE's Nifty 50 index, to the new centre.
    They hope this will create a larger pool of liquidity for
the product, as well as boosting activity at the Gujarat
International Finance Tec-City (GIFT), an initiative led by
Indian Prime Minister Narendra Modi in his home state.
    The collaboration remains subject to further approvals from
relevant local authorities, the exchanges said, adding they were
also working to resolve related arbitration proceedings.
    The two exchanges have been locked in a dispute after
India's three main bourses unexpectedly announced in February
last year that they would stop licensing their indexes to
foreign bourses from August.*:nL4N1TI03O
    An Indian court last May referred the dispute to an
arbitrator, asking SGX to continue listing and trading SGX Nifty
contracts beyond August while barring it from offering proposed
new products until a final decision.*:nL4N1UL46W    
    NSE and SGX said they would work to have their proposed NSE
International Financial Service Centre (IFSC)-SGX Connect
project at GIFT operational before the end of 2020, subject to
members' readiness and receiving relevant approvals.
    Vikram Limaye, managing director and chief executive of NSE,
said he hoped all SGX Nifty futures volumes would ultimately
move to GIFT IFSC.
    "The objective is to make GIFT City the hub of all India
access products," Limaye said. "If we are able to successfully
transition the SGX Nifty contract, I see no reason why all India
access products can’t be transitioned to GIFT City."
    The Indian government has been trying to lure foreign
investors to GIFT City, which offers close to zero tax, dollar
contracts, and top-notch infrastructure.*:nL4N2300KE
    Still, daily trading volumes have been a fraction of the
tens of billions of dollars on the country's two main stock
    SGX Nifty futures in Singapore have daily average volumes of
$1.8 billion, dwarfing volumes on NSE's international exchange
at GIFT. 
    Over the past two decades, SGX has become the most popular
market for foreign investors to bet on Indian equity indexes,
with Nifty 50 futures  SINc1  tracking the NSE's main index
 .NSEI .

 (Reporting by Abhirup Roy
Writing by Swati Bhat and Promit Mukherjee
Editing by David Holmes)
+91-22-68414381; Reuters Messaging:
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.