What is Gift Nifty ? SGX Nifty is now Gift Nifty

 

Marking the shift of a $7.5 billion derivative trade from the Singapore Exchange to the NSE International Exchange (NSE IX) in Gandhinagar, Gujarat, the SGX Nifty futures contracts have been rebranded as Gift Nifty, effective from 03-July 2023.

For years, SGX (Singapore) Nifty has served as an early indicator of the Nifty's potential opening on any given day and was often the first point of reference for traders in the morning before the Nifty commenced trading at 9:15 am in India.

According to NSE MD and CEO Ashish Chauhan, "This development is going to establish the morning prices for India. There were significant concerns about placing orders in Singapore, but now they will be matched in GIFT City, Gandhinagar, India. It was once regarded as a futuristic concept in people's minds, but now that it has become a reality, it seems magical."

What is Gift Nifty?

Gift Nifty is simply a new name assigned to SGX Nifty, as all existing positions in SGX have been transferred to NSE IX, effective immediately. Instead of being traded on the Singapore Exchange, the Nifty futures contracts, denominated in US dollars, will now be traded on NSE IX, located within the GIFT City Special Economic Zone (SEZ) and operating under the regulatory framework of the International Financial Services Center Authority (IFSCA).

What will happen to SGX Nifty?

Trading of SGX Nifty has been suspended, and it will ultimately be delisted from the Singapore Exchange.

 

What are the timings of Gift Nifty?

Gift Nifty will be accessible for nearly 21 hours, overlapping with trading hours in Asia, Europe, and the US. It operates in two sessions: the first session is from 6:30 am to 3:40 pm, and the second session is from 4:35 pm to 2:45 am.

 

How to check the Gift Nifty figures?

 The Gift Nifty figures can be checked at   https://www.nseix.com/

 

How does the shift from SGX Nifty to Gift Nifty benefit investors?

Since NSE IX operates within a Special Economic Zone (SEZ), investors will receive exemptions from various taxes, including the Securities Transaction Tax (STT), commodity transaction tax, dividend distribution tax, and capital gains tax.

"It becomes highly advantageous for non-resident participants. Additionally, all Indian entities that establish subsidiaries there are treated as non-residents and are also eligible for tax exemptions," explained V Balasubramanian, CEO of NSE IX.

 

How Gift Nifty will  impact retail traders and investors?

For retail traders and investors, there won't be significant changes as it simply involves migrating from one stock exchange to another.

Can retail traders trade in Gift Nifty contracts?

No. Leveraged trades are not allowed for individuals under the Liberalized Remittance Scheme (LRS) route.

Which other contracts would be available under Gift Nifty?

 In addition to Gift Nifty50, NSE IX will introduce Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT derivative contracts, with intentions to gradually introduce other indices in the future.