Singapore Markets: Price Discovery

I had been tracking ADRs of Indian company for years now. Many of the prominent companies like ICICI Bank, Tata Motors, Infosys, Tata Communications, HDFC, WIPRO. Dr Reddy’s, MTNL, Sterlite etc. are listed in New York. Being 12 hours behind India, the closing price of this exchange gives the insight about the opening prices in India.

NIFTY Futures are traded in Singapore Stock exchange. On monday NSE closed first for 2 hours then for the rest of the day. However Singapore stock exchange only cooled off trades in NIFTY for 5 minutes. So essentially FII could still trade, while domestic markets were closed.

Days like these makes me wonder if merely tracking prices is good enough. Indian government allows individuals to send money abroad and invest in foreign markets, but why do so few of us avail this facility? (there is an annual upper cap of 100,000 USD or so, but its large enough for most of us)

4 replies on “Singapore Markets: Price Discovery”

Is it the fear of the unknown ?
u know as well as i do what standards and quality of service we get from our local brokerages and institutions…
as it is the way the markets behave and how the politicians influence laws and how our system works and how influence can bend rules is well known
Why do u think most money is invested in debt and fds?

Secondly the supercrash has shocked most small investors who will think twice before

i had a smith barney account and was amazed with the quality of service they offered in the US markets.
i am sure there would be a atleast a couple of smart traders (small or big) who should use the singapore facility to reduce their risks …

did i hear the word couple ?
I fully agree we are more than a billion and more than couple would surely try, considering how many funds touch swiss and isle of man accounts

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