The Prime Minister, during his visit to Gujarat, will launch India International Bullion Exchange (IIBX) at Gujarat International Finance Tec-City (GIFT City) on July 29. IIBX is intended to facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialization of gold in India, according to a statement by the IFSC Authority.
Apart from that, the Prime Minister will also launch NSE IFSC-SGX Connect. Under this Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC order matching and trading platform.
"The said Connect will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC," according to the Government.
He will also lay the foundation stone of the unified regulator International Financial Services Centres Authority's (IFSCA) headquarters building.
GIFT City is India's maiden International Financial Services Centre (IFSC).
To launch the products at Gift City, National Stock Exchange and SGX have formed a Special Purpose Vehicle (SPV) called 'NSE International Financial Service Centre (IFSC) SGX Connect'. According to a Times Now report, the SGX Nifty Futures will be traded for close to 19 hours a day at GIFT city.
Nifty contracts on SGX are popular among foreign investors, and at one time contributed as much as 10% to the Singapore bourse's revenue.
In 2021, SGX had an average daily volume of Rs 26,000 crore compared to Rs 14,500 crore on NSE. Singapore is a preferred location for foreign investors due to its favorable taxation and availability of dollar-denominated products.
The proposed SGX Connect is modeled after the Shanghai-Hong Kong Stock Connect and is expected to give Gift City a boost as it will be possible to route trades through NSE IFSC.
The SGX Nifty futures will trade simultaneously at SGX and GIFTIFSC for the first few months. Later, SGX will discontinue the product from Singapore, as per the Times Now report.
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