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NSE defers SGX Nifty Futures launch at IFSC GIFT City, PM Modi’s visit cancelled due to heavy rains in Gujarat

The launch of NSE International Financial Service Centre (IFSC) SGX Connect, the platform that would help Singapore Exchange members to deal in Nifty derivatives at the NSE IFSC, has been postponed

NSE defers SGX Nifty Futures launch at IFSC GIFT City, PM Modi’s visit cancelled due to heavy rains in Gujarat
NSE IFSC-SGX Connect is an initiative between National Stock Exchange and SGX to collaborate in trading stock index based products. Image: Reuters

The launch of NSE International Financial Service Centre (IFSC) SGX Connect, the platform that would help Singapore Exchange members to deal in Nifty derivatives at the NSE IFSC, has been postponed. Both the National Stock Exchange (NSE) and Singapore Exchange (SGX) told this to their trading members and vendors through a circular on Wednesday. Prime Minister Narendra Modi was expected to launch Nifty futures contracts at the Gujarat International Finance Tec (GIFT) city on 15 July 2022. But PM Modi’s visit has been postponed due to heavy rainfall in several parts of the state which has resulted in a flood-like situation.

“Members may note that the operationalisation of the NSEIFSC-SGX Connect is deferred. The revised date for operationalisation of the Connect shall be informed shortly through a separate circular,” NSE IFSC said in a circular on Wednesday. It may be noted that the NSE IFSC-SGX Connect is an initiative between National Stock Exchange and SGX to collaborate in trading stock index based products.

This platform is likely to help Indian companies raise foreign capital. Earlier this year, Tata Consultancy Services, which controls over 40 per cent of the capital markets infrastructure solutions, had won a contract from Singapore Stock Exchange to run trading and settlement platforms for the upcoming SGX Nifty Exchange at International Financial Services Centre in Gandhinagar. The NSE, BSE, National Securities Depository, MCX, Metropolitan Exchange Central Securities Depository, Clearing Corporation, and the regulators RBI and SEBI use TCS solutions.

Nifty derivatives contracts on the SGX are heavily traded; those are used by global investors to hedge their exposure to India. SGX has formed a special purpose vehicle — SGX India Connect IFSC or SGX ICI — to run NSE IFSC. Last year, Vikram Limaye, MD and CEO of NSE, said that the launch of the market Data Connect will bring 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,” Limaye had said.

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