Prime Minister Narendra Modi will inaugurate the India International Bullion Exchange (IIBX) and launch the SGX Nifty trade on NSE IFSC-SGX Connect in GIFT city in Gujarat’s Gandhinagar on July 29.
Besides PM Modi, Gujarat Chief Minister Bhupendra Patel, Union Home Minister Amit Shah, Union Finance Minister Nirmala Sitharaman, and Union Minister of State for Finance Pankaj Chaudhary, among others, will attend the event at the Gujarat International Finance Tec-City (GIFT city).
The prime minister will also lay the foundation stone of the headquarters of the International Financial Services Centres Authority (IFSCA), the unified regulator for the development and regulation of financial products, financial services, and financial institutions, PTI reported.
NSE IFSC-SGX Connect
Singapore Exchange (SGX) Nifty is a derivative investment product based on India’s National Stock Exchange’s (NSE) Nifty 50.Only foreign portfolio investors and other overseas investors will be permitted to trade in SGX Nifty. In 2018, NSE said it would terminate this arrangement in the following year, but SGX challenged that decision and sued the exchange. In 2020, they settled the case by arbitration and decided to launch the SGX Nifty in Gandhinagar, and not in Singapore.
For now, the trading of SGX-NIFTY derivative product will be held simultaneously in Gandhinagar IFSC-SGX Connect and Singapore Exchange (SGX). But Singapore trading will fully stop after all issues are ironed out, according to media reports.
Technology Provider For NSE IFSC SGX-Connect
Tata Consultancy Services’ (TCS) BaNCS platform will provide the technology support to NSE IFSC-SGX Connect in Gandhinagar. SGX has selected TCS because its BaNCS platform can support multi-broker integrations and has low latency features. TCS will handle the clearing, settlement and risk management operations at NSE IFSC-SGX Connect.
In a press statement a TCS spokesperson said the NSE IFSC-SGX Connect will allow SGX members to place orders using FIX/proprietary application protocol interface (APIs) or through the designated TCS BaNCS dealing terminal. “The solution’s clearing and settlement module will interact with the clearing arms of NSE IFSC and SGX for position and limits management, while also performing all regulatory compliance functions,” the statement said.
International Bullion Exchange (IIBX)
The IIBX is jointly owned by NSE, Multi Commodity Exchange (MCX), India INX International Exchange, National Securities Depository (NSDL), and Central Depository Services (CDSL). So far, about 60 qualified jewellers have signed up for IIBX.
"This shall empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality. This also re-enforces the commitment of the Government of India towards enabling India to be able to influence global bullion prices as a principal consumer," the IFSC Gandhinagar (International Financial Services Center) told PTI.
A TOI report said that IIBX will have three vaults and one of them owned by Sequel Global is already ready and approved. The second vault operated by Brinks India is ready and is awaiting regulatory approval. The third vault is under construction.
The report said that once the gold is imported in India, it will be stored at the IFSC approved vault. After that, a depository receipt will be issued and then the gold will be ready for trading.
