Watch: International investors to trade through Singapore Exchange in Gift Nifty

International investors will now trade through Singapore Exchange in Gift Nifty from Monday. The 7 billion dollar open interest contract has been relaunched from the GIFT City in Gujarat’s Gandhinagar. For the last 22 years SGXNifty was an operational Singapore stock exchange. With the beginning of operations in a new geographical area SGX-Nifty futures contracts have been re-branded as Gift Nifty.

Ashish Kumar Chauhan, MD & CEO; NSE, says: "The NSE and SGX have been trying to bring the order flow from Singapore and across the world. which trades to Singapore into the gift city. Today is when the entire liquidity of the SGX in Nifty has now been shifted back.

This collaboration is significant as it marks the first cross-border initiative connecting the capital markets of India and Singapore. Over the past 22 years, SGX Nifty has served as an early indicator of how Nifty is likely to open on a given day, often being the first thing traders check in the morning before Nifty opens for trading at 9:15 am.

According to Balasubramaniam Venkataramani, MD, NSE IX,  the market used to daily look at that market for the price signal. Now that signal will no longer happening from Singapore but from today its has move to our own Indian own IFSC India owns international financial centre at gift IFSC, he added.

The International finance service centre at GIFT city enjoys special facilities and tax incentives. There is no Security Transaction Tax and Goods and Service Tax in GIFT City, and foreign investors are not subject to any income tax. Even domestic investors can enjoy a tax holiday for 10 years.

Tapan Ray, MD & CEO GIFT City, says it is a very significant day for Gift City and for India as well because this product of Nifty, which has been traded from Singapore, will now be traded at Gift City Exchange, which is the NSE IFSC Exchange.

Like SGX Nifty, Gift Nifty will be accessible for nearly 21 hours, overlapping with Asia, Europe, and US trading hours. It will be open in two sessions, from 6:30 am to 3:40 pm, and then again from 4:35 pm to 2:45 am. The National Stock Exchange expects to attract significant investments in Indian companies through Gift Nifty in the near future.