The Singapore Exchange-National Stock Exchange (SGX-NSE) Connect, a proposed special purpose vehicle, in Gujarat's GIFT IFSC should begin to be implemented soon as most of the regulatory approvals have been given, Indian envoy to Singapore Jawed Ashraf said on Monday.
"It will give a boost to GIFT and SGX's role in the Indian financial market, as India is rapidly moving towards a USD 5-trillion economy," said High Commissioner Jawed Ashraf, who officiated at the Daily Securities Market Opening ceremony on Monday as part of the SGX 20th anniversary celebrations.
The proposed special purpose vehicle will allow the NSE's India-related products offered on the SGX, including Nifty futures, to be executed in the Gujarat International Financial Services Centre, or GIFT City. Recently, it got the regulatory approvals from Securities and Exchange Board of India and the Monetary Authority of Singapore.
He added that the SGX has had close links with India, with nearly 85 per cent of India's external commercial bonds and majority of Masala bonds being listed on the SGX, which has also been trading in Nifty and rupee derivatives.
Ashraf also said Singapore is already a leading investor in India through all three routes of foreign investment -- foreign direct investment (FDI), foreign portfolio investment (FPI), and external commercial borrowing.
A series of measures to liberalise the regime for ECB and FPI has also been taken by the government that will substantially expand the opportunities for foreign investors in India and open new avenues for Indian companies to tap the capital markets abroad, Ashraf said.
He highlighted the measures that the government has taken to strengthen and deepen the Indian financial sector, including the banking and NBFCs sector, which had been facing stress in recent years.
The high commissioner also said that as India aims to grow to a USD 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.
Meanwhile, the Singapore Exchange (SGX) has underlined the importance of Indian market with huge financing needs in the infrastructure and green projects.
SGX President M Ramaswami at the ceremony said, "India is an important market for the SGX, given the wide range of capital market and investment opportunities for investors and issuers. We currently have close to 200 debt securities by more than 100 Indian issuers listed on the SGX, with issued amounts of about USD 80 billion."
The Singapore Exchange 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, the SGX is the listing destination for all of India's international green bonds, he assured.
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 real estate investment trusts and business trust listings.
"We have welcomed a number of overseas sovereign bonds, including those issued by State Bank of India, NTPC, National Highways Authority of India (NHAI), Rural Electrification Corporation Ltd and Indian Renewable Energy Development Agency," said the Singapore bourse's chief.
As India and Singapore further strengthen cooperation, the 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 optimising these for our mutual benefit," said Ramaswami.
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