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SGX, NSE get regulatory nod for NSE IFSC–SGX Connect

THE Singapore Exchange (SGX) and the National Stock Exchange of India (NSE) have obtained regulatory support for a joint proposal to have trades in SGX's popular Nifty futures contracts executed in Gujarat International Financial Services Centre, or GIFT City.

The proposed NSE International Financial Service Centre (IFSC)-SGX Connect, which is subject to further approvals from relevant local authorities, will enable SGX and NSE IFSC members to access Nifty products in GIFT while managing their exposures through their respective clearing corporations, said the SGX and the NSE in a joint statement on Tuesday.

SGX and NSE will continue to work with all key stakeholders to make the NSE IFSC-SGX Connect operational before the end of 2020, subject to members' readiness and receiving all relevant approvals, they said.

Both exchanges are also working to discontinue related arbitration proceedings.

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SGX chief executive officer Loh Boon Chye said: "India is an important market for international investors and we are committed to collaborating with NSE and other stakeholders to build connectivity and access to one of the fastest-growing economies in the world."

NSE managing director and CEO Vikram Limaye said: "This is a great opportunity to build vibrant markets in GIFT City. We are working on varied product offerings to make GIFT City the hub of activity for all India access products across asset classes for international investors and a gateway for home investors to access international markets.

"Our partnership with SGX is an important step for GIFT City to realise the vision of the prime minister of India to be the preeminent financial centre serving the needs of home and international stakeholders."