SGX Nifty is Now GIFT NIFTY

GIFT NIFTY (formerly SGX NIFTY) is a futures contract based on the Nifty 50 Index of the National Stock Exchange of India (NSE).
It is traded on NSE International Exchange located at Gujarat, earlier it was traded on the Singapore Exchange (SGX).
Recently trading on SGX NIFTY ceased in Singapore and the entire trading volume and liquidity fully switched to GIFT IFSC and rechristened as GIFT Nifty.
Currently, 4 products are being offered under the umbrella brand of GIFT Nifty
- GIFT Nifty 50,
- GIFT Nifty Bank,
- GIFT Nifty Financial Services
- GIFT Nifty IT derivatives contract.
This is the first cross-border initiative in connecting India and Singapore’s capital markets.
Gift Nifty is a new derivatives index that will be launched on July 2023, by the National Stock Exchange of India (NSE) in its International Financial Services Centre (IFSC) at GIFT City, Gujarat.
Gift Nifty will be a dollar-denominated futures contract based on the Nifty 50 index, and will be traded on the NSE IFSC exchange.
Regulator – GIFT Nifty will be regulated by International Financial Services Center Authority (IFSCA).
Eligibility – The launch of GIFT Nifty is expected to make it easier for foreign investors to trade in the Indian stock market.
Currently, foreign investors can only trade in the Indian stock market through the NSE or the Bombay Stock Exchange (BSE).
However, the NSE and the BSE are located in India, which can make it difficult for foreign investors to trade during Indian business hours.
Trading Hours – As GIFT Nifty will be traded for 21 hours, overlapping major trading hours in Europe, Asia and the U.S., retail investors will be able to easily hedge their positions now.
Investors will have the same level of protection as they do when trading in Nifty futures contracts on the NSE.
Indian retail investors will not be eligible to trade in Gift Nifty under the Liberalised Remittance Scheme (LRS).

NIFTY 50

It is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.
It is owned and managed by NSE Indices, which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.

International Financial Service Centre (IFSC)

It is a statutory authority that was established in 2020 under the International Financial Services Centres Authority Act, 2019.
It is an authority to develop and regulate financial services, financial products and financial institutions in the IFSC in India.
Currently, there is only one IFSC being developed in India, Gift City, in Gandhinagar, Gujarat.

Frequently Asked Questions (FAQs) about GIFT Nifty:

Q1: What is GIFT Nifty?

A1: GIFT Nifty, formerly known as SGX Nifty, is a futures contract based on the Nifty 50 Index of the National Stock Exchange of India (NSE). It is a dollar-denominated futures contract traded on the NSE International Exchange located at Gujarat International Finance Tec-City (GIFT City) in Gujarat, India.

Q2: Why was SGX Nifty rebranded as GIFT Nifty?

A2: The trading of SGX Nifty ceased in Singapore and transitioned to GIFT Nifty at GIFT City. This rebranding reflects the cross-border initiative connecting India and Singapore’s capital markets and aims to enhance trading opportunities for foreign investors in the Indian stock market.

Q3: What products are offered under the GIFT Nifty umbrella?

A3: Currently, four products are offered under the GIFT Nifty brand: GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT derivatives contract. These products are derivatives contracts based on the Nifty 50 index.

Q4: Who regulates GIFT Nifty?

A4: GIFT Nifty is regulated by the International Financial Services Centre Authority (IFSCA), which is a statutory authority established under the International Financial Services Centres Authority Act, 2019.

Read also:- Dudhwa National Park