"Singapore exchange alone has an open interest of close to about 10 billion US dollars. And this 10 billion US dollars, which is almost five times of the exposure on the Indian Nifty Futures, is now going to completely switch to the NSE-IFSC exchange or the NSE International Exchange at GIFT City," says V Balasubramaniam, MD & CEO, GIFT IFSC. Your efforts of such a long time actually is being materialised. How does it feel now? And talk to us about the importance of this. I would like to inform you that this is actually going to be a very watershed moment in the history of India because for the first time we are actually going to get an international contract which we have exported out of India to move back to India.
In some sense we call it on-shoring the offshore. That is exactly what we are going to achieve. So as you know, Nifty is the benchmark equity index for India. Roughly India's market capitalisation is about 3.5 trillion dollars. And almost 20 to 25% of this exposure is with foreign investors as we call as FPIs. Now these investors, normally whenever they want to hedge in terms of the market movement or the volatility on the equity market, they actually express it through basically trading through the Nifty futures contract.
And most of this contract is now executed more than on-shore in the NSE domestic exchange.
It is actually traded in the Singapore exchange, which is the SGX. And to give you a rough idea, for example in Nifty, on the domestic market we have an open interest of close to about 1.5 to 2 billion dollars in terms of dollar terms. On a similar comparable figure, Singapore exchange alone has an open interest of close t...