From today, the SGX Nifty will be known as the GIFT Nifty.
Synopsis
Beginning Monday, SGX Nifty futures contracts, which were formerly traded on the Singapore exchange, will be exchanged on the NSE’s International Financial Services Centre (IFSC) in India. The change is part of an agreement between the NSE and the SGX. SGX Nifty/GIFT Nifty is a derivatives contract on the NSE’s Nifty index that allows investors to forecast Nifty performance before the Indian market opens. Nifty contracts on the NSE are denominated in rupees, while GIFT Nifty contracts are based on the NSE’s Nifty index, enabling investors to assess Nifty performance before the Indian market opens. Nifty contracts on the NSE are denominated in rupees, while GIFT Nifty contracts are denominated in US dollars. Exemption from securities transaction tax, commodities transaction tax, dividend distribution tax, capital gains tax, and income tax is one of the perks of trading GIFT Nifty on IFSC.
Trading in GIFT Nifty
The new avatar of SGX Nifty – the internationally famous derivatives contract on the NSE’s Nifty index that was traded on the Singapore market (SGX) till Friday – will commence on Monday. These identical SGX derivatives contracts will begin trading on the NSE’s foreign market at Gujarat’s foreign Financial Services Centre (IFSC) on Monday. The NSE and SGX have reached an agreement to relocate the bourse from Singapore to India…
What exactly is the SGX Nifty/GIFT Nifty?
It is a derivatives contract on the NSE’s Nifty index that begins trading a few hours before the Indian market opens and continues trading till the early morning hours of India time. Because of the early session, these contracts are a useful signal for investors to take a position on the Nifty before it begins trading on the NSE.
What are the distinctions between Nifty contracts traded on the NSE and GIFT Nifty?
The NSE Nifty contracts are denominated in rupees, whilst the GIFT Nifty futures are priced in US dollars. Contracts in India are traded from 9 a.m. to 4 p.m., whereas contracts on the IFSC are exchanged from 6.30 a.m. to 3.40 p.m., and then again from 4.35 p.m. to 2.45 a.m. (all India time).
How well-known are SGX Nifty contracts?
Until recently, the daily volume of these contracts was $1.5-2 billion. When the NSE begins trading GIFT Nifty futures on Monday, all open contracts on the SGX as of Friday’s conclusion of trade will be transferred to the NSE’s IFSC market.
What are the advantages of trading the GIFT Nifty?
Because the IFSC is a special economic zone (SEZ), all transactions are free from securities transaction tax (STT), commodity transaction tax (CTT), and dividend distribution tax. The facility also benefits from exemptions from capital gains and income taxes.
SGX Nifty has been renamed Gift Nifty.
Timings, how to examine data, and major changes are all described.
Synopsis
As the $7.5 billion derivative trade switches from the Singapore Exchange to the NSE International Exchange (NSE IX) in Gandhinagar, India, the SGX Nifty futures contracts have been renamed as Gift Nifty. NSE MD and CEO Ashish Chauhan feels that this action would establish the morning pricing for India and is beneficial to non-resident players owing to tax benefits. The movement across exchanges has little impact on regular traders and investors. NSE IX will also provide derivative products such as Gift Nifty Bank and Gift Nifty IT.
With effect from Thursday, July 3, SGX Nifty futures contracts have been renamed as Gift Nifty, marking the transfer of a $7.5 billion derivative trade from the Singapore Exchange to the NSE International Exchange (NSE IX) in Gujarat’s Gandhinagar.
For years, the SGX Nifty has been an early sign of how the Nifty would begin on a given day, and it was often the first item traders checked in the morning before the Nifty opened for trading at 9:15 a.m.
“This will set the prices for India in the morning.” People were worried about what would happen if they placed orders in Singapore. However, it corresponds with GIFT City, Gandhinagar, India. In people’s minds, it was all a sci-fi activity. “It’s magic now that it’s happened,” said NSE MD and CEO Ashish Chauhan.
What exactly is Gift Nifty?
Gift Nifty is just a new name for SGX Nifty, since all open positions in SGX have been moved to NSE IX as of today. Instead of the Singapore Exchange, US dollar-denominated Nifty futures contracts will now trade in NSE IX, which is located in GIFT City SEZ and operates under the International Financial Services Centre Authority’s (IFSCA) regulatory framework.
What will happen to the SGX Nifty?
The SGX Nifty has been halted from trading and will be delisted from the Singapore Exchange in the near future.
What are the SGX Nifty trading hours?
Gift Nifty will be available for about 21 hours, overlapping with trading hours in Asia, Europe, and the United States. It is available in two sessions: from 6.30 am to 3.40 pm in the first session and from 4.35 pm to 2.45 am in the second.
How can you verify the Gift Nifty figures?
The numbers for the Gift Nifty may be seen on the NSE IX website.
How would the change help investors?
Because NSE IX is based in a SEZ, investors will be excluded from STT, commodity transaction tax, dividend distribution tax, and capital gain tax.
“It becomes significantly more beneficial for non-resident players.” And any firms from India that establish a subsidiary there are similarly classified as non-residents and are tax free’, said NSE IX CEO V Balasubramaniam.
What effect does it have on regular traders and investors?
Nothing much changes for ordinary traders and investors since it is just a transition from one stock market to another.
Can ordinary investors trade Gift Nifty contracts?
No. Individuals using the Liberalised Remittance Scheme (LRS) cannot engage in leveraged trading.
What other contracts would Gift Nifty make available?
In addition to the Gift Nifty50, NSE IX will include Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT derivative contracts, with plans to progressively roll out further indices in the future.
