Singapore-India set trade from Gujarat

The Singapore Exchange-National Stock Exchange (SGX-NSE) Connect trading is being implemented at the Gujarat International Finance Tec-City’s (GIFT) International Finance Services Centre (IFSC).

Regulatory approvals have been completed for SGX-NSE Special Purpose Vehicle to start operations from GIFT IFSC, India’s High Commissioner to Singapore, Jawed Ashraf, said on 26 August 2019.

“It will give a huge boost to GIFT and to SGX’s role in the Indian financial market, as India rapidly moves towards a US$5 trillion economy,” said High Commission Jawed Ashraf.

SGX has had close links with India, with listing of nearly 85% of India’s external commercial bonds and majority of Masala bonds as well as trading in NIFTY and Rupee Derivatives.

Singapore is already a leading investor in India through all three routes of foreign investment – FDI, Foreign Portfolio Investments and External Commercial Borrowings, said Jawed Ashraf.

The FDI regime is very open in India, said the High Commissioner after officiating at the Daily Securities Market Opening ceremony as part of SGX 20th anniversary celebrations.

He listed the series of measures taken by the Government has also taken a series of measures to liberalise the regime for External Commercial Borrowings and FPI that will substantially expand the opportunities for foreign investors in India and open new avenues for Indian companies to tap the capital markets abroad.

He highlighted the measures that the government has taken to strengthen and deepen the Indian financial sector, including the banking and the stressed NBFCs sector.

High Commissioner said: “As India aims to grow to a US$5 trillion economy in the next few years, it will need huge capital, both domestic and foreign.

“The slew of measures initiated by our government to ease conditions for external commercial borrowings and foreign portfolio investment will be of great benefit to Indian investors and offers foreign investors expanded opportunities in a stable and rapidly growing economy,” he said of the economy boosting measures announced by Finance Minister Nirmala Sitharaman last Friday in New Delhi.

SGX has also underlined the importance of Indian market where huge financing is needed for the infrastructure and green projects.

“India is an important market for SGX, given the wide range of capital market and investment opportunities for investors and issuers alike,” said SGX President M. Ramaswami at the ceremony.

“We currently have close to 200 debt securities by more than 100 Indian issuers listed on SGX, with issued amounts of about US$80 billion,” Ramaswami pointed out.

SGX remains committed to promoting overseas access and connectivity to India, he stressed.

“To this end, we are pursuing a set up that works for the benefit of all participants, in close collaboration with market infrastructures and GIFT City in India,” said Ramaswami.

In addition, with India’s huge financing needs in infrastructure and green projects, SGX is proud to be the listing destination for all of India’s international green bonds, he stressed.

Besides the debt capital markets, SGX’s equity raising platform has also enabled Indian domestic companies and international companies with significant business interests in India, to raise funds and monetise assets through REITs and business trust listings.

Notably, more than 85% of active international debt securities listed by Indian bond issuers are listed on SGX.

“We have welcomed a number of overseas sovereign bonds, including those issued by the State Bank of India, NTPC, National Highways Authority of India (NHAI), Rural Electrification Corporation Limited (REC) and Indian Renewable Energy Development Agency (IREDA),” said the Singapore bourse chief.

As India and Singapore further strengthen cooperation, SGX will continue to be an ideal venue for India issuers looking to internationalise and tap global capital.

“The reinforced bilateral ties will introduce more opportunities, and we look forward to optimizing these for our mutual benefit,” said Ramaswami. fiinews.com