GIFT NIFTY is a famous Singapore Exchange (SGX). NIFTY began trading from GIFT City in the state of Gujarat on Monday. He executed around 30,000 trades in a single session.
This is the first cross-border initiative connecting the capital markets of India and Singapore.
The agreement between SGX and NSE
Under a five-year agreement between SGX and NSE, the business will be shared substantially 50:50. For the business generated by Singapore, SGX will receive a total of 75 percent of the revenue. NSE, on its part, will receive the rest of the 25 per cent. For the International Financial Services Center (IFSC) business, NSE will hold a total of 75 per cent of the business. Once a “threshold volume” is reached, both entities will adopt a 50:50 split basis.
The first negotiation session
For GIFT NIFTY, the first trading session was held on Monday. There were around 30,000 trading volumes and a total of 90 percent of them were executed through the SGX. NSE IX expects international investors to come directly to the IFSC in a phased manner, instead of going through SGX.
It is also important to note that NSE IX will not be able to enter into agreements like these with any other exchange. The contract may be extended for two more years once the five-year period has ended.
What is GIFT NIFTY?
Trading on SGX NIFTY was halted in Singapore on June 30. All trading volume shifted to GIFT IFSC. It was renamed GIFT Nifty. Currently, under the GIFT Nifty brand, four products are offered.
How important is the change for India? It was Prime Minister Narendra Modi who first initiated the migration in July 2022. However, it was in the month of April this year that Singapore accepted a full Nifty switch to July 3.
“GIFT Nifty is a major milestone for GIFT IFSC and its outreach to foreign investors and enhancement of the capital market ecosystem in GIFT City… For the last two decades, SGX has been our bridge to the world. It has linked two of the world’s fastest growing economies,” National Stock Exchange Managing Director and CEO Ashish Chauhan said at GIFT City on Monday.
Boon Chye, chief executive of the Singapore Exchange, said: “This is the first trading tie-up of its kind, with trading and matching in India and clearing and settlement in Singapore.”
Schedules
The GIFT NIFTY begins at 6:30 am in the Asian time zone. GIFT NIFTY continues till 3:40 pm. The second session begins from 4:35 p.m. to 2:45 p.m. (the next day). It is aimed at investors in Europe and the US.
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Source: ptivs2.edu.vn