This could be a big blow to domestic derivative markets for reasons mentioned below:
- Operational hours: The Indian derivatives markets operate in tandem with the cash markets. But, investors can trade SGX futures round-the-clock. This is an advantage for the investors, especially in the western hemisphere, who find it difficult to trade according to Indian trading hours.
- Cost-effective: SGX doesn’t impose securities transaction tax (STT) and stamp duty, which are levied by India.
- SGX is already a key destination for Indian futures among overseas investors. SGX accounts for half of the volumes in the SGX Nifty Futures.
- Investors can also trade from the SGX without having a broker or terminal in the exchange.
Advantage SGX!
