The SGX Nifty has been rebranded as GIFT Nifty as it shifted to the NSE International Exchange (NSE IX) in GIFT City and all derivative contracts that traded in Singapore, valued at about $7.5 billion, are now relocated to India
Instead of Singapore Exchange, US dollar-denominated contracts of Nifty futures will now trade in NSE IX which is in GIFT City SEZ and works under the regulatory framework of the International Financial Services Center Authority (IFSCA)
For years, SGX Nifty has been an early indicator of how Nifty is likely to open on a given day and was often the first thing traders used to check in the morning before Nifty opens for trading at 9:15 am. SGX Nifty has now been suspended for trading and will eventually get delisted from the Singapore Exchange
Moving from the Singapore Exchange to the NSE IX marks another step towards the government’s ambition to turn GIFT City into a hub for Indian and global financial and IT businesses. Gift Nifty figures can be checked on the NSE IX website
From today, July 3, GIFT Nifty has adopted a revised schedule of two sessions. It will be accessible for almost 21 hours, and it overlaps with Asia, Europe, and US trading hours. It is open in two sessions - from 6.30 am to 3.40 pm and then again from 4.35 pm to 2.45 am in the second session
For retail traders and investors, nothing much changes as it is just a migration from one stock exchange to another. Other than Gift Nifty50, NSE IX will also have Gift Nifty Bank, Gift Nifty Financial Services and Gift Nifty IT derivative contracts with plans to gradually roll out other indices later on
Data showed that SGX Nifty futures had a daily average turnover of $3.9 billion and an average open interest of $9.6 billion in 2022. The turnover that was previously generated in the offshore market will now be onshore in GIFT City. The GIFT Nifty is expected to have daily volumes of $1.5 billion to $2 billion, NSE International Exchange MD V Balasubramaniam said in a media interview
NSE and Singapore Exchange will be splitting revenues. The move will consolidate the liquidity pool for Nifty products in the NSE IFSC exchange and will facilitate access for global market participants in GIFT City. Unlike domestic stock exchanges where foreign investors had to hedge since investments were in Indian rupee, investments in NSE IX are in dollar terms
NSE International Exchange IFSC Limited or NSE IX is a subsidiary of NSE based in GIFT City. Stock exchanges operating in the GIFT City are permitted to offer trading in securities in any currency other than the Indian rupee. Accordingly, NSE IX, which started operating in 2017, offers dollar-denominated trading in various products
As per NSE IX, any trading member Indian or foreign registered or non-registered setting up its office through subsidiary/branch model can start trading in the GIFT Nifty products by taking membership of NSE IX. About five dozen brokers have set up units in Gift City including Motilal Oswal Finsec IFSC Limited, Anand Rathi International Ventures (IFSC), Antique Stock Broking (IFSC), Nuvama Capital Services (IFSC), Geojit IFSC, SMC Global IFSC Private Limited, Bonanza Portfolio (IFSC) Pvt Ltd and Emkay Global Financial Services IFSC
Other brokers that have set up units in Gift City include Ashika Stock Broking IFSC Private Limited, Dolat Capital IFSC Pvt Ltd, East India IFSC Private Limited and Share India Securities (IFSC) Private Limited, among others. These trading members are entitled to execute trades on their own account as well as on account of their clients