Singapore Exchange Ltd could also be allowed to set up its branch in India
Non-resident Indians (NRIs) and Singapore nationals will soon be able to trade in Indian scrips directly. The Centre is negotiating with Singapore for setting up an Indian stock exchange branch in Singapore.
In return, Indian citizens can look forward to trading in shares of companies listed on Singapore Exchange Ltd.
The Singapore exchange could be allowed to set up its branch in the proposed International Financial Centre in one of the special economic zones in India.
The International Financial Centre will house banks and insurance companies, besides capital market entities.
Officials told Business Standard that as part of the Comprehensive Economic Co-operation Agreement with Singapore, India recently discussed several financial sector initiatives, primarily in banking and capital markets.
An Indian delegation led by Commerce Secretary Dipak Chatterjee was in Singapore last week for parleys with its Singapore counterpart.
Singapore has also sought a clause in the agreement to ensure that Development Credit Bank of Singapore can open 200 branches in India.
The Centre on its part has demanded that the six Indian banks that have offices in Singapore should be permitted to open an equal number of branches there. A plan to share ATMs between Indian and Singapore banks is also being negotiated.
An official said the National Stock Exchange or any other large bourse could open a branch in Singapore.
