NSE-SGX to get nod to launch trading from Gujarat IFSC in two months: Sources

The National Stock Exchange (NSE) and the Singapore Exchange (SGX) are expected to get an approval from their country’s respective securities regulator in the next two months to jointly launch financial products from NSE’s IFSC exchange in GIFT City, Gujarat, sources told Moneycontrol.

The two exchanges started a discussion on launching a joint venture after the NSE, along with BSE and MSEI, in February 2018 announced that they would stop sharing data feeds with the SGX, based on which it operates Nifty and Indian stock futures in Singapore. As part of subsequent arbitration proceedings, the Bombay High Court had allowed SGX to continue to operate trading on the Indian products till December 2020.

“After getting approval from SEBI and the Monetary Authority of Singapore, which is expected over the next two months, the NSE and SGX will form a special purpose entity (SPE), which will be based in the GIFT City. They have already submitted their plans to the respective regulators,” a source said.

Another source termed the deal a win-win, as the SGX will not only launch Nifty and single stock futures but also other SGX products. “SGX will pay royalty (to NSE) for trading on Indian index and stock futures. It will also earn royalty (from NSE) on trading in its own products,” the source said.

However, actual operations at the international exchange are expected to commence only from January 2020, according to the source.