SGX Nifty is now Gift Nifty. Timings, how to check data & key changes explained
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. Migration across exchanges has no meaningful 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.
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. Migration across exchanges has no meaningful 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 is Gift Nifty?
Gift Nifty is just a new name for SGX Nifty, since all open positions on 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 to check Gift Nifty figures?
Gift Nifty data are available on the NSE IX website.
How does the shift benefit 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.
How does it impact retail traders and investors?
Nothing much changes for ordinary traders and investors since it is just a transition from one stock market to another.
Can retail traders trade in Gift Nifty contracts?
No. Individuals using the Liberalised Remittance Scheme (LRS) cannot engage in leveraged trading.
Which other contracts would be available under Gift Nifty?
NSE IX will also offer Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT derivative contracts in addition to the Gift Nifty50, with plans to progressively roll out more indices in the future.
