SGX Nifty to be known as GIFT Nifty from July 3; check details

The NSE IFSC-SGX Connect at GIFT City, Gandhinagar, would be the sole trading location for SGX Nifty derivatives as of July 3, according to a circular sent out by the Singapore Exchange to its trading members in April.

“Full-scale operation of the NSE IFSC-SGX Connect with the transition of SGX Nifty derivatives to NSE IFSC will take place on 3 July 2023. Following the transition, all US dollar-denominated Nifty derivatives contracts will be exclusively traded on NSE IFSC,” said a circular from the Singapore Exchange.

On June 30, 2023, all open positions in SGX Nifty will automatically shift to NSE IFSC Nifty as part of the liquidity switch, according to the SGX.

The stock market in India starts at 9:15 am every day, while SGX Nifty, which opens at 6:30 am IST, is used as an early sign of how it might perform.

In Gujarat International Finance Tec-City, also known as GIFT City, the development would allow investors to trade in dollar-denominated Nifty futures contracts that are available on the SGX.

Market participants would also have immediate access to NSE IFSC market data in addition to this. NSE IFSC is an exchange located at IFSC in GIFT City, Gujarat, and is a fully owned subsidiary of NSE.

Foreign investors that do not want to trade in India frequently use the SGX Nifty contracts. The Singapore Stock Exchange’s revenue at its height came from trading in the Nifty by as much as 10%. Amid worries about a shift in foreign traders’ trading activity to Singapore, India’s stock exchanges decided in early 2018 to suspend licencing its indexes to foreign bourses as of August 2019.

SGX Nifty to get delisted, NSE IFSC-SGX Connect to become operational. Read here