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NSE and SGX progress on NSE IFSC-SGX Connect

National Stock Exchange (NSE) and Singapore Exchange (SGX) have entered into a formal agreement to cement the key terms for operationalising the NSE IFSC-SGX Connect which will bring together international and Gujarat International Finance Tec-City (GIFT) participants to create a bigger liquidity pool for Nifty products in GIFT City. Both NSE and SGX will also withdraw the arbitration proceedings.

The two exchanges have recently received further regulatory clarifications from the relevant authorities on the implementation of the Connect, since receiving consent from their respective statutory regulators on the proposed Connect model last year. Both parties will continue to work with key stakeholders to develop the infrastructure for the Connect and ensure member readiness prior to its implementation.

Loh Boon Chye, Chief Executive Officer of SGX, said, “Building connectivity across international platforms in Singapore and India will facilitate unfettered access for global market participants, and in turn enhance investments and capital market flows between India and the world. As Asia’s pioneering central counterparty, SGX will work with NSE and stakeholders to develop a connectivity infrastructure that incorporates international best practices and creates new value for existing and new customers. We deeply appreciate the continued support provided by the government and regulatory authorities in India and Singapore. We look forward to broadening participation and deepening liquidity in Nifty products for international participants, as part of the growth of GIFT City.”

Vikram Limaye, Managing Director and Chief Executive Officer of NSE said, “This Connect is one of the key developments for the integration of GIFT City ecosystem with the international financial markets. It would lead to development of vibrant and liquid markets for India access products at GIFT City with the ease of access to international investors. Our collaboration with SGX is an important step towards fulfilling the vision of Atmanirbhar Bharat as envisaged by our Honourable Prime Minister of India with GIFT IFSC playing a much larger role in the global financial markets. The connect will broaden the international and domestic participant base and further strengthen the capital market ecosystem in GIFT city resulting in more broad based development across asset classes and capital raising activity. I wish to thank the Government of India, SEBI, IFSC Regulatory Authority, GIFT City administrative authorities and the government and regulatory authorities in Singapore for their guidance and support.”

Shri Injeti Srinivas, Chairman, International Financial Services Centres Authority, ( IFSC Authority) said,  “The NSE-SGX Connect for funneling trading in NIFTY Products at SGX to GIFT IFSC is an important joint financial market initiative by India and Singapore. This will certainly give a boost to the IFSC Eco System and promote larger participation in IFSC. The connect creates a win-win situation for both sides, which makes it possible to have a sustainable and growing partnership between NSE IFSC and SGX”

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