Gift Nifty started to trade on 3 July 2023, you may have some questions like What is the Gift Nifty? Who can trade Gift Nifty? In this article, you will get all information that is important to understand about Gift Nifty.
What Is The Gift Nifty?
Singapore Stock Exchange SGX Nifty which many Indian traders and investors used before the Indian market opened to predict how the Indian market will open, is now changed to Gift Nifty, in short, the SGX Nifty is now known as Gift Nifty.
NSE IX (NSE International Exchange) is a subsidiary of the National Stock Exchange of India (NSE) which is operating in GIFT City, Gandhinagar, Gujarat.
Singapore Stock Exchange SGX Nifty is now operating from the GIFT City, Gandhinagar, Gujarat, hence the new name of SGX Nifty is Gift Nifty. The Singapore Exchange will transfer all derivative contracts to the NSE International Exchange (NSE IX) in Gandhinagar, Gujarat.
Integration Of NSE IX & SGX.
Integration of NSE IX and SGX is a partnership between the NSE and the Singapore Exchange (SGX) to develop stock index-based products from GIFT City and to attract global investors to India. This integration opens up an additional opportunity for investors from other nations to engage in India’s economic development path.
Through SGX Group’s unique trading infrastructure in GIFT City, investors worldwide can now trade Nifty contracts published on NSE IX easily and quickly with global risk management and clearing standards. Investors can also obtain NSE IX market data in real-time.
According to a five-year agreement, the business ratio will be split 50:50. Initially, SGX will receive 75% of the revenue generated by Singapore, while NSE will receive the remaining 25%. The NSE will keep 75% of any business generated by the International Financial Service Centre (IFSC). When a “threshold volume” has been met, sharing will be 50:50 for both entities.
How GIFT NIFTY Will Work?
The Singapore Exchange’s special-purpose vehicle firm, SGX IFSC India Connect, has begun routing all orders from foreign clients to NSE IX for trading and execution. The executed trades will be cleared and paid for by the NSE IFSC Clearing Corporation (NICCL). SGX-DC will serve as the central counterparty for SGX clearing members.
What Futures & Options Available to Trade under GIFT NIFTY?
At the initial stage, the Futures & Options for Gift Nifty 50 and Gift Nifty Bank is available to trade, along with this the Futures & Options for GIFT Nifty Financial Services, and GIFT Nifty IT will be added for trading.
What Are Fees For GIFT NIFTY Futures & Options?
From 3rd July 2023, the mentioned below fees is applicable on Gift Nifty Futures & Options.
| Particular | Cost |
|---|---|
| Exchange Transaction Charges – Gift Nifty Futures | Prop- $0.40 / Client – $1.50 per lot |
| Exchange Transaction Charges – Gift Nifty Options | Prop- 0.05% / 5 basis point of Option Premium, Client – 0.10% / 10 basis point of Option Premium |
| IFSCA Turnover Fee | 0.00010% of the turnover |
| Stamp Duty | Not Applicable |
| STT | Not Applicable |
| Investor Protection Fund | Not Applicable |
Who Can Buy GIFT NIFTY?
This is one of the important questions currently for all Indian retail traders and investors. The Indian retail traders and investors are not yet added to directly buy and trade GIFT NIFTY.
According to the NSE IX, “Any trading member Indian / foreign registered or non-registered with their domestic regulator by setting up its office through subsidiary/ branch model can start trading in the Gift Nifty products by taking membership of NSE IX.”
Currently, more than 50 brokers have established facilities throughout GIFT City. These trading members are authorized to execute trades on their own accounts as well as the accounts of their clients.
What Is GIFT NIFTY Timing?
The trading timing for GIFT NIFTY is divided into 2 trading sessions. The first trading session starts at 6.30 AM and ends at 3.40 PM, and the second trading session starts at 4:35 pm and ends at 2:45 am (the next day).
How Can See GIFT NIFTY?
The Gift Nifty Indices chart is available on TradingView under Furutes, currently, GIFT NIFTY 50 and GIFT NIFTY BANK are available under Furutes on TradingView.
Frequently Asked Questions about GIFT NIFTY.
What Is the Gift Nifty?
– The older SGX Nifty is now known as Gift Nifty. Gift Nifty is the first initiative to connect India and Singapore capital markets.
How can I trade in Gift Nifty from India?
– The Indian retail traders and investors are not yet added to directly buy and trade GIFT NIFTY. According to the NSE IX, “Any trading member Indian / foreign registered or non-registered with their domestic regulator by setting up its office through subsidiary/ branch model can start trading in the Gift Nifty products by taking membership of NSE IX.”
What is SGX Nifty and Gift Nifty?
– The SGX Nifty has now converted to the Gift Nifty which means that all futures that are trading on the SGX Nifty will be routed through Gift Nifty.
Where can I see Gift Nifty?
– GIFT Nifty contracts can be seen on the NSE IX website https://www.nseix.com/, also Gift Nifty Indices chart is available on TradingView under Furutes, currently, GIFT NIFTY 50 and GIFT NIFTY BANK are available under Furutes on TradingView.
What is the timing of Gift Nifty Market?
– The first trading session starts at 6.30 AM and ends at 3.40 PM, and the second trading session starts at 4:35 pm and ends at 2:45 am (the next day).