Singapore Exchange Extends South Asia Reach with Liaison Office in India

Singapore’s main financial trading venue has reported that it has established a new liaison office in India's financial capital. The Singapore Exchange (SGX) extends its relationship with the BRICS nation in financial markets, which commenced over fourteen years ago. The current move highlights Singapore’s commitment to act as Asia’s global epicentre for banking and financial services.

Singapore Exchange’s liaison office will be headed up by Neena Prasad. The new office that is located in central Mumbai will pay a key role in bridging indian and Singapore financial markets. It will give local Indian firm’s the opportunity to explore capital raising opportunities at the multi-asset exchange.

Singapore has been receptive to Indian markets since the new millennium, in 2000 the exchange cooperated with the National Stock Exchange (NSE) to develop India's financial derivatives sector with the deployment of futures products on stock indices and single stocks. The SGX increased its foothold in India when it acquired a 5% minority stake in India’s oldest financial bourse, the Bombay Stock Exchange.

Magnus Böcker, CEO of SGX, commented in a statement: “The opening of our India Office re-affirms SGX's long-standing commitment to India. We will continue to strengthen our partnership with NSE as we grow the Nifty franchise internationally. As a stakeholder in BSE, we will support the exchange by bringing efficiency with new initiatives and IPOs.

At the same time, our India Office will enable us to better support Indian enterprises seeking to raise capital as India is one of the world’s fastest growing economies with significant funding needs to support its growth and development. We look forward to working with partners in India to assist companies in reaching out to the international investment community."

SGX’s office in India will provide information and act as a communication channel to support capital raising by Indian companies in Singapore. Such capital raising can be achieved via listing of stocks, bonds, Real Estate Investment Trusts, business trusts and/or depository receipts.

The news between the two countries relationship comes when the MNI Business Survey results show optimism in the indian business environment. The MNI India Business Indicator rose to 70.0 in July from 69.2 in June, led by increased optimism among construction and service sector companies.

China or India for Singapore? or Both?

Singapore recently became the world's’ third largest centre for currency trading, overtaking Tokyo, according to the 2013 BIS Triennial FX Survey. The rapid growth and progress seen by the country comes on the back of growing importance of two of Asia’s giant economies, India and China. Singapore has battled hard with rivals such as Hong Kong (for the China market) and Dubai (for the Indian market) to keep afloat of other centres. However, with India and China have differing needs, can Singapore meet the requirements of both centres?

Singapore is an established player in the market, its main exchange lists instruments from both markets, eg. FTSE China A50 or CNX Nifty. The exchange constantly expands its international offering, last year the firm entered the FX futures market with currency pairs from emerging markets eg INR and CNY.

Earlier this month, the exchange announced the set-up of a new Liquidity hub in Hong Kong to target mainland-China, thus signalling improved ties with regional rival, Hong Hong.

Singapore ticks all the boxes for firm’s looking to set-up a localised offering to target the domestic and wider Asia-market. Furthermore, its sound regulatory framework allows companies from developed markets to experience the same standards.

In a keynote address in March 2013, Singapore’s financial watchdog’s, the Monetary Authority of Singapore, Managing Director, Ravi Menon, pictured, commented about the country’s value proposition as a financial hub, he outlined four major positives the country has; smart Regulation , diverse ecosystem, pan-Asian focus; and deep talent pool.