NSE, SGX sign pact on Connect model to deepen liquidity of Nifty products in GIFT City

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September 22, 2020 6:00 PM

The NSE International Financial Service Centre (IFSC)-SGX Connect aims to bring together the trading of Nifty products to Gujarat International Finance Tech-City (GIFT) and create a larger pool of liquidity, comprising international and home market participants.

This will certainly give a boost to the IFSC ecosystem and promote larger participation, he added.

Leading bourse NSE and Singapore Exchange (SGX) have entered into a formal agreement to cement the key terms for operationalising the NSE IFSC-SGX Connect, a move that will deepen liquidity in Nifty products, the Indian bourse said on Tuesday.

The NSE International Financial Service Centre (IFSC)-SGX Connect aims to bring together the trading of Nifty products to Gujarat International Finance Tech-City (GIFT) and create a larger pool of liquidity, comprising international and home market participants.

In addition, NSE and SGX will withdraw the arbitration proceedings, the Indian exchange said in a statement.
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 exchanges will continue to work with key stakeholders to develop the infrastructure for the Connect and ensure member readiness prior to its implementation.

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,”said Loh Boon Chye, Chief Executive Officer of SGX.

“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,” he added.

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.

According to him, 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.

“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,” he added.

Injeti Srinivas, chairman of 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 ecosystem and promote larger participation, he added.

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