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)