India and Singapore held discussions on Thursday to expand collaboration in capital markets as Singapore Exchange (SGX) seeks to collaborate with National Stock Exchange (NSE). According to reports from The Financial Express, Deputy Prime Minister of Singapore Gan Kim Yong revealed that SGX and NSE are exploring different alternatives including derivatives and dual listing possibilities to provide greater access for Indian business entities to regional and global capital markets. The discussions took place at the fourth India-Singapore Ministerial Roundtable held in Singapore on Thursday. As reported by latest developments, the two exchanges and their respective regulatory authorities would continue discussions on initiatives aimed at strengthening the depth and breadth of capital markets, with possible areas including derivatives and dual-listing opportunities. Gan stated that dual listing could give Indian businesses greater access to capital in the region and internationally by leveraging SGX's connections and the depth of Singapore's capital market, with the two exchanges expected to continue examining potential forms of collaboration.
Both countries discussed expanding collaboration between United Payment Interface (UPI) and Singapore's PayNow, which was established in 2023. As reported by The Financial Express, Gan stated that the collaboration is progressing well but hopes to facilitate participation by more banks and merchants. The latest data shows the bilateral payment arrangement has progressed significantly, with transaction value in the first half of 2026 reaching close to S$21 million, more than six times the transaction value recorded during the first half of 2025. Singapore and India are seeking to increase participation by banks and merchants in the payment arrangement. The Deputy Prime Minister also announced the upcoming Project Nexus initiative, which will bring multiple nations together in UPI-PayNow type collaboration, with the Nexus expected to come online by 2027 according to current schedules. Unlike the UPI-PayNow arrangement, Project Nexus is designed as a multilateral system with India as one of the founding members alongside five ASEAN countries, including Singapore.
The renewed discussions indicate that India and Singapore may now explore opportunities beyond the existing NSE-SGX connectivity arrangement. According to Dalal Street Investment Journal, India-linked derivatives were previously traded on SGX, providing overseas investors exposure to Indian indices, but the launch of GIFT Nifty in July 2023 marked a major shift, with Nifty derivatives trading migrating from Singapore to NSE International Exchange (NSE IX) at GIFT City through the NSE-SGX connectivity arrangement. The potential collaboration could help Indian companies gain access to a wider pool of global capital while making Indian equity and derivatives markets more accessible to international investors. International derivatives products, greater access for overseas investors and possible mechanisms to help Indian corporates connect with foreign capital are among the areas that could emerge from the discussions. A broader NSE-SGX partnership could support India's efforts to internationalise its financial markets and attract greater foreign institutional participation.
One of the most significant possibilities being explored is dual listing, where if an appropriate framework is developed, Indian companies could potentially gain access to a broader international investor base and deeper cross-border liquidity. As reported by Dalal Street Investment Journal, dual listings may also improve global visibility, institutional participation and price discovery for Indian companies. This could be particularly relevant for Large-Cap companies, technology firms, financial sector players and high-growth businesses looking to raise substantial capital and strengthen their presence among global investors. Singapore, as a major financial hub in Asia, could provide Indian companies greater access to international institutional investors and act as a gateway to other global capital markets. Such a framework could potentially complement domestic fundraising avenues and broaden the investor base available to Indian corporates, with NSE, which dominates India's equity derivatives market, expected to benefit from higher trading volumes and increased revenue opportunities.
Despite the potential benefits, significant regulatory and practical challenges will need to be addressed before any broader arrangement can be implemented. According to Dalal Street Investment Journal, developing a framework for cross-border derivatives products or dual listings would require coordination between regulators, exchanges and other market participants. The migration of SGX Nifty trading to GIFT Nifty also highlights India's intention to retain a greater share of offshore trading activity and the associated liquidity within its own financial ecosystem. As a result, India is likely to pursue a carefully regulated approach that balances greater openness to foreign capital with the need to retain oversight and strengthen domestic market infrastructure. While the renewed NSE-SGX discussions could be strategically important for both India and Singapore, any meaningful impact on the markets is likely to take time, with immediate market impact remaining limited but a successful expansion potentially helping Indian companies access global capital while supporting the international growth of India's equity and derivatives markets.
Beyond the six main pillars, Singapore and India discussed potential cooperation in space technology where Gan said India had strong space technology capabilities and was one of the key launch sites for satellites. Singapore is interested in exploring cooperation in research and development as well as commercial activities, with the Singapore Space Agency working with India's IN-SPACe to identify potential areas of collaboration and develop future initiatives. The countries also discussed nuclear technology, particularly small modular reactors (SMRs), where Singapore has not decided whether to adopt nuclear power but wants to keep pace with developments in the technology. Gan said the two sides discussed sharing experience and knowledge on SMRs and exploring potential cooperation in the area. Cybersecurity was identified as another area for cooperation as both countries expand their digital infrastructure, with cybersecurity having become an important component of digitalisation. The countries also discussed innovation, with India having developed initiatives intended to connect investors and innovators and provide opportunities to commercialise new ideas, with India having operated such initiatives domestically and in France and considering bringing the innovation platform to Singapore.
