Mission Accomplished: Ashish Chauhan's Triumph in Bridging the Gap between Singapore and India's Stock Exchanges

This led to the signing of a historic agreement for a cross-border trading link known as NSE IFSC-SGX Connect.

In a feat that many deemed impossible, Ashish Chauhan, the 55-year-old managing director and CEO of India's National Stock Exchange (NSE), has successfully resolved the long-standing acrimony between the Singapore Exchange (SGX) and NSE. July 03, 2023 marks a historic breakthrough as the Singapore Exchange's (SGX) Nifty derivative, known as SGX Nifty, prepares to trade on a subsidiary of the National Stock Exchange (NSE) in Gujarat International Finance Tec-City (Gift City), a burgeoning tax-neutral financial hub. This pivotal development opens the doors for a new era of cross-border trading and positions Gift City as a key player in the global financial landscape. The move signifies a significant milestone in the collaboration between Singapore and India's capital markets, showcasing Chauhan's extraordinary ability to turn challenges into opportunities.

The dispute between SGX and NSE originated in 2018 when SGX announced its plans to develop Nifty-based products, prompting NSE and another Indian bourse to halt data feeds to foreign exchanges in an effort to retain liquidity within India. Legal battles ensued, and the Bombay High Court ordered the two exchanges into arbitration. However, through a series of visits and negotiations, including personal trips by SGX Group CEO Loh Boon Chye and NSE officials, Chauhan played a pivotal role in ending the arbitration proceedings in September 2020. This led to the signing of a historic agreement for a cross-border trading link known as NSE IFSC-SGX Connect.

Under this agreement, the Nifty derivative contracts will be rebranded as GIFT Nifty, emphasizing the innovative pathway that Chauhan has carved out to foster collaboration between Singapore and India's capital markets. The SGX Nifty currently boasts an open interest of US$6 billion to US$7 billion, and with the implementation of the new GIFT Connect, it is expected to attract both international and domestic liquidity pools, further bolstering the Indian market's growth potential.

Chauhan's visionary leadership extends beyond bridging the gap between exchanges. As the head of NSE, he oversees a market with unparalleled activity and technological advancements. NSE, handles around 190 million trades on busy days, amounting to a staggering trading value of approximately US$35 billion. In terms of settlement efficiency, NSE's T plus 1 timeframe outshines other major exchanges, such as the US at T plus 2 and Indonesia's transition from T plus 3 to T plus 2.

The success of NSE under Chauhan's guidance can be attributed to his unconventional journey to the world of finance. Born to civil servants in Gujarat, he initially attended local schools before being selected for the prestigious Indian Institute of Technology, Mumbai. However, his fascination with economics led him to pursue an MBA from Indian Institute of Management, Calcutta. Chauhan's expertise in technology and finance paved the way for his pivotal role in the establishment of NSE, where he played a key part in modernizing the exchange and surpassing the trading volumes of its crosstown rival, the Bombay Stock Exchange.

After his time with the Reliance Group and a stint as CEO of the Indian Premier League cricket franchise, Chauhan returned to the stock exchange realm. Last July, he took the helm at NSE, which was grappling with controversies surrounding bourse manipulation and preferential access to its trading system. Chauhan wasted no time in prioritizing the modernization of NSE's technology infrastructure, aiming for even greater scalability and efficiency.

The impressive performance and potential of NSE have attracted a diverse group of investors, including Life Insurance Corp of India and State Bank of India, the country's largest lender. Currently, NSE is seeking permission from India's regulator, the Securities & Exchange Board of India (SEBI), for a public share offer.

As the order-matching operations transition to Gujarat's Gift City, the promise of a flourishing Indian market becomes even more tangible. With Chauhan's unwavering determination to transform NSE into a model institution, positions him as a visionary leader and catalyst for change within India's financial landscape.

Ashish Chauhan's remarkable journey, from a Gujarati-speaking son of civil servants to the forefront of India's financial revolution, exemplifies the power of determination and innovation. As he continues to steer NSE towards greater heights, his relentless pursuit of excellence sets a precedent for the financial world. With Chauhan at the helm, the Indian capital market is poised to reach new horizons, attracting global investors and solidifying its position as a key player in the international arena.