In 2000, a delay in the approval of index futures trading in India, led to the launch of Nifty futures in Singapore. This dichotomy is starkly seen in India’s policy missteps when it comes to developing vibrant and liquid financial markets onshore. The government’s stated policy is to curb the export of financial markets to offshore centres such as Singapore and Dubai. But in practice, recurring policy mistakes continue to help these offshore centres gain at the expense of onshore markets. News reports suggest Singapore Exchange (SGX) will soon launch futures contracts with top Indian stocks as the underlying.

Source: Mint January 03, 2018 22:07 UTC