Both NSE and SGX will also withdraw the arbitration proceedings. In May 2018, SGX and NSE went to court in India to settle its dispute where NSE tried to prevent SGX from launching new derivatives products to address SGX’s loss of Nifty 50 futures contracts.
Both exchanges have also recently received further regulatory clarifications from the relevant authorities on the implementation of the Connect. They received consent from their respective statutory regulators on the proposed Connect model in 2019.
“Building connectivity across international platforms in Singapore and India will facilitate unfettered access for global market participants, and in turn enhance investments and capital market flows between India and the world,” says SGX CEO Loh Boon Chye.
“As Asia’s pioneering central counterparty, SGX will work with NSE and stakeholders to develop a connectivity infrastructure that incorporates international best practices and creates new value for existing and new customers,” Loh adds.
See also: Let the children play
Vikram Limaye, the managing director and CEO of NSE says, “This Connect is one of the key developments for the integration of GIFT City ecosystem with the international financial markets. It would lead to development of vibrant and liquid markets for India access products at GIFT City with the ease of access to international investors”.
“The connect will broaden the international and domestic participant base and further strengthen the capital market ecosystem in GIFT city resulting in more broad based development across asset classes and capital raising activity,” he adds.
Shares in SGX closed flat at $8.90 on September 22.
