GIFT NIFTY: Connecting the Capital Markets of India and Singapore

  • The GIFT NIFTY (previously known as the SGX NIFTY) began trading from GIFT City in Gujarat, marking the first cross-border venture between India and Singapore’s financial markets.
  • Over 30,000 deals were executed throughout the trading session, demonstrating the growing importance of this relationship.

What exactly is GIFT NIFTY?

  • PM Modi launched the transition to GIFT NIFTY in July 2022.
  • GIFT NIFTY is critical in broadening the reach of GIFT IFSC to overseas investors and improving the capital market ecosystem in GIFT City.
  • The partnership of SGX and NSE increases the link between two rapidly expanding economies.
  • NSE IX is prohibited from engaging into similar arrangements with other exchanges, ensuring the partnership’s stability.
  • The original five-year contract is renewable for another two years.

Time spent in operation

  • GIFT NIFTY creates a trading link in which trading and matching take place in India while clearing and settlement take place in Singapore.
  • It is open from 6:30 a.m. to 3:40 p.m. in Asia time.
  • The second session, from 4:35 p.m. until 2:45 a.m. the following day, is aimed at investors from the United States and Europe.

SGX and NSE agreement

  • Revenue distribution: The five-year agreement calls for Singapore Exchange (SGX) and NSE International Exchange (NSE IX) to split revenue 50:50.
  • Initial income split: SGX will receive 75% of revenue generated in Singapore, while NSE would receive the remaining 25%.
  • IFSC business: The NSE will keep 75% of the International Financial Service Centre (IFSC) business, while SGX would get the remaining 25%.
  • Volume-based sharing in the future: Once a “threshold volume” is met, revenue will be distributed equally between the two organisations.

Switch to GIFT NIFTY

  • Trading on the SGX NIFTY in Singapore ceased on June 30, with all trading volume and liquidity shifting to the GIFT IFSC.
  • GIFT NIFTY has been renamed: The trading platform was renamed GIFT NIFTY, and it now offers four products: the GIFT Nifty 50, the GIFT Nifty Bank, the GIFT Nifty Financial Services, and the GIFT Nifty IT derivatives contracts.
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