FIIs shifting to SGX Nifty

The market melt-down in the June has witnessed traders going into an over-drive to make money on short positions. However, it is not the domestic traders alone who are keen to benefit from the declining prices, the trading volumes on the Nifty futures traded on the Singapore Stock Exchange have recorded their highest monthly turnover in the month of June.
There has been plenty of negative news flow in June with domestic inflation climbing above 11 per cent, Reserve Bank of India hiking the credit reserve ratio and the reverse repo rate and the international crude prices crossing above $140. Resurfacing of the problems stalking the financial stocks in the US and rate hikes by other Central Bankers only added fodder to the fuel.
The trading fraternity has been making the most of these ill-tidings. The futures and options side of the National Stock Exchange that had witnessed lacklustre turnover after October 2007, witnessed a 20 per cent increase in monthly turnover in the month of June.
It may be recalled that in October 2007, the Securities and Exchanges Board of India (SEBI) had banned issue of participatory notes with derivatives as underlying. This had closed the doors for many of the external investors who wished to trade in the Indian derivatives market. The Nifty future traded on the Singapore Stock Exchange (SGX) has provided the route for such external investors to take a call on the Indian stock price movement.