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NSE-SGX platform may help Indian firms raise foreign capital: IFSCA

Tapan Ray, Group CEO of GIFT City, said the development between NSE and SGX will “chart the course for trading of SGX NIFTY products on Indian soil through the IFSC platform at GIFT City”.

Talking about the NSE IFSC-SGX Connect — an initiative between National Stock Exchange (NSE) and SGX to collaborate in trading stock index based products, IFSCA Chairman Srinivas said the platform is expected to become operational by the end of 2021.

The NSE IFSC-SGX Connect platform that is expected to become operational in GIFT City by the end of 2021, could help Indian companies raise foreign capital in future, said Injeti Srinivas, chairperson, International Financial Services Centres Authority (IFSCA), on Friday.

Addressing the gathering at the formal opening of Singapore Exchange (SGX) offshore office in GIFT campus, Srinivas said, “Singapore is a well established and highly acknowledged global financial hub. As far as (GIFT) IFSC is concerned, it is India’s endeavour to integrate with the global financial system and position the IFSC as the gateway for capital flows in and out of the country… One of the most important prerequisites for India’s growth and aspiration to become a five trillion dollar economy, is global capital flows… A lot of investments are looking for reliable, sustainable destinations for investments, and I think India will be one of the preferred destinations.”

Talking about the NSE IFSC-SGX Connect — an initiative between National Stock Exchange (NSE) and SGX to collaborate in trading stock index based products, Srinivas said the platform is expected to become operational by the end of 2021.

“Right now it is for NIFTY products, but in future it can be a two-way process. Indian companies can also raise international capital from this exchange. Foreign companies, especially from south-Asia can raise capital here,” he added.

Loh Boon Chye, CEO of Singapore Exchange, in his virtual address said the formal opening of the SGX office in GIFT City will make the cooperation with NSE stronger. “We are also excited to announce the launch of our GIFT Data Connect, another significant achievement in delivering the NSE IFSC-SGX Connect. The GIFT Data Connect enables SGX international members to access real-time trading data of NIFTY contracts…, giving investors unrivalled insights into India’s equity markets,” the SGX official said.

Vikram Limaye, MD and CEO of NSE, said the launch of the market Data Connect brings NSE IFSC-SGX connect one step closer to operationalising. “This market Data Connect will allow SGX members to read the price data of NIFTY derivatives products at NSE IFSC real-time. It will help them fine-tune their trading strategies in preparation for the connect to go live… Our teams are working closely to set up the Connect infrastructure to ensure smooth transition of trading derivatives through NSE IFSC.”

Limaye said the NSE IFSC SGX connect showcases the “close cooperation” between India and Singapore where the progress is being supported at the highest levels of both the governments.

Tapan Ray, Group CEO of GIFT City, said the development between NSE and SGX will “chart the course for trading of SGX NIFTY products on Indian soil through the IFSC platform at GIFT City”. “The landmark step will not only attract global investors and increase the participant base, but will also encourage many more offshore entities to establish their presence in GIFT City… Connectivity across two international platforms — one at GIFT CIty and other at Singapore… will augment capital market flows between India and rest of the world,” Ray added.

Cheong Ming Foong, Consul General of Singapore in Mumbai, said the SGX office in GIfT City is a “concrete manifestation” of the excellent relationship between Singapore and India. He said the project will enhance investments and capital markets flows into India. He said the full fledged operation of NSE IFSC-SGX Connect is likely to only around Vibrant Gujarat summit that will be held in the earlier part of January 2022.

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