The Monetary Authority of Singapore (MAS) and the International Financial Services Centre Authority (IFSCA) signed a Memorandum of Understanding (MOU) on Supervisory Cooperation, on 29 July 2022, at the Gujarat International Finance Tec-City (GIFT City).
The Singapore Exchange (SGX Group) and the National Stock Exchange of India (NSE) launched the NSE IFSC-SGX CONNECT (Connect) on the same day.
The High Commissioner of the Republic of Singapore to India, Simon Wong, attended the ceremony to mark the events on 29 July. Government officials from Singapore, with the senior management of SGX Group and NSE, joined the event.
The highlights of the MoU are:
The MoU on Supervisory Cooperation reflects the high level of mutual comfort between our financial regulatory authorities and the close bilateral ties between Singapore and India. Simon Wong said they look forward to learning the best practices with India and sharing experiences building a facilitative regulatory regime for businesses.
According to Singapore, the MOU between MAS and IFSCA will establish a formal basis for supervisory cooperation, consultation, and the exchange of information about approved exchanges and technical cooperation.
Further, the MOU intends to facilitate timely and effective supervision, identify risks to the financial system, and cement capacity-building initiatives on both sides.
NSE IFSC-SGX CONNECT
The project represents what is possible when two leading players in the international capital markets collaborate for mutual benefit. Moreover, it symbolizes Singapore and India’s longstanding and broad-based bilateral relations.
High Commissioner Simon Wong said, “We are happy that, with the support of Prime Minister Modi, we envisioned a major and complex project and implemented it successfully.”
More About Connect
The Connect enables global institutions to trade Nifty equity derivatives at NSE IFSC via an innovative structure set up by the SGX Group. Its foundation was laid earlier in September 2020, when the SGX Group and NSE entered a collaboration agreement to set up Connect. Further to the commencement of two earlier phases, the Data Connect I in November 2021. It coincided with the opening of the SGX Group’s office in GIFT City. The Connect will bring together international and GIFT participants to create a unified and larger liquidity pool for Nifty products in GIFT City.