GIFT NIFTY
GIFT NIFTY Is The First Cross-Border Initiative With The Purpose Of Connecting India And Singapore’s Capital Markets. It is known As Because the Entire Trading Open Interest, Volume and Liquidity Fully Switched To GIFT IFSC. It was previously traded on the Singapore Exchange’s (SGX) platform With the Name of SGX NIFTY. It Is a Outcome of Five Year Contract between Singapore Exchange (SGX) and National Stock Exchange International Exchange (NSE IX).This is the first of its kind trading link, with trading and matching in India and clearing and settlement in Singapore. Which Means NSE Is Going to Manage the Trades and SGX Will Be Dealing with Verification Of The trades.
Advantages of GIFT NIFTY:
- Exposure for Investors to the Indian Market: It Will Give Investors to Gain Access of Indian Stock Market without Going through the hassle of opening a brokerage account in India.
- Tax Advantages: Non-residents Will Be Benefited from It For Example Exemptions from the capital gains tax, securities transaction tax (STT), and stamp duty.
- Extended Trading Hours: It Will Enhance Accessibility for Investors across different time zones All Over the World.
Key Facts about Gift Nifty:
- GIFT Nifty Products: It Will Include Four Derivative Contracts In Form Of GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT derivative contracts.
- Extended Trading Hours: will be traded from Four AM IST to 2 AM According To Indian Slandered Time Which Will Allow For Trading Overlap With Asian, European, And US Trading Hours.
- Indicators for Indian Markets: As We Are Very Well Aware of the Fact That SGX NIFTY Is Rebranded as Gift Nifty Which Is Early Indicator for the Indian market, Which Usually Sets The price And Tone for the Indian market.
- Extended Reach To The Global Investors: It Will Enable Global Investors To Directly Connect With The Indian Capital Markets Which Will Significantly Increase Their Reach And Participation.
- No Change in Day to Day Transaction Activity for Traders and Investors: Trader and Investors will Be Able to continue Their Day to Day Transactions in the Same Manner as They Have Been Doing Earlier Which Means the trading experience remains Mostly Unchanged.
- Partnership between SGX and Nifty: SGX and Nifty will Have 50-50 Participation In GIFT Nifty. SGX will handle Day to Day clearing Activities, while the trading of Derivative Contracts (Futures and Options) Will Be Handled By NSE.
So Now From 3rd Of Jully 2023 7.5 Billion Dollar Worth Of The SGX Nifty Now Rebranded As Gift Nifty Where Both The Exchanges(NSE & SGX) Will Continue To Make Money Through Day To Day Business & Investor Don’t Have To Track SGX To Predict Market Sentiment.
