GIFT Nifty to have 21-hour trading in two sessions

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NSE IFSC-SGX Call, Monday, Unveiling the new identity of GIFT Niftywhich will replace the existing SGX Nifty Futures and Options contracts with effect from 3rd July 2023 after switching from Singapore Stock Exchange (SGX) to GIFT IFSC in GIFT City, Gandhinagar.

From June 30, the full circulation of Stylish SGX will stop working in sgx and The entire volume will switch to GIFT IFSC from 3 July. The entire open interest in SGX Nifty will convert to GIFT Nifty. “We already have more than 60 registered brokers and around 40-50 brokers in the pipeline. GIFT Nifty will be a catalyst to make GIFT City a price-setting tool for the largest exchange-traded instruments in the world,” said Ashishkumar Chauhan, Managing Director and CEO of NSE.

This will enable Nifty derivatives denominated in US dollars to be traded on NSE IX under the regulatory framework of the International Financial Services Center Authority (IFSCA). GIFT Nifty orders placed by SGX members will be forwarded to NSE IX for trading and execution with clearing and settlement through the SGX Derivatives Clearinghouse.

Also read: SGX Nifty Will Cease To Exist After June: What Traders Need To Know

Trading in GIFT Nifty F&O contracts will begin on July 3 with a trading time of 21 hours spread between two sessions, the first session of nine hours starting from 0630 IST until 1530 IST. After a rest period, the second 12-hour session begins at 1545 IST and will continue until 0245 IST the next day, V. Balasubramaniam, Managing Director and Chief Executive Officer, NSE IX (NSE International Exchange IFSC Ltd) informed. Trading timing covers trading hours in Asia, Europe and the United States.

Currently, SGX Nifty has a 16-hour trading session starting from 0630 IST until 2230 IST. Domestic Indian capital markets take a cue from SGX Nifty before opening at 0915.

Initially, derivative contracts for GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services and GIFT Nifty IT will be available on NSE IX under the GIFT Nifty Collection. The officials said other indexes will be gradually rolled out under Gift Nifty.

Also read: Global shippers come call at the IFSC in GIFT City

Enable P-Notes replacement

Injeti Srinivas, Chairman of IFSCA, described it as a landmark moment for the stock exchanges at GIFT IFSC – GIFT City Special Economic Zone.

“Thanks to NSE Connect, we are able to reach out to all those global investors who are not directly involved in the Indian capital markets. Parallel to this, there are initiatives underway to see that global investors also directly engage with the Indian capital markets through these international exchanges. In GIFT IFSC, Srinivas said.

“We are looking into the potential of sponsored depository receipts (SDRs) and unsubsidised depository receipts (UDRS) in Indian equities, which once enabled, would be very beneficial for IFSC in terms of scale and for the country as well. Today, a lot of foreign investors are not very keen. They get to enter the Indian capital markets and comply with the requirements and so they deal with the capital markets through FPIs and through P-Notes.But once you get the SDR and the UDR, we expect that it will gradually replace the P-Note path and also add a lot of transparency and clarity to the capital markets,” Srinivas said.

Notably, in July 2022, Prime Minister Narendra Modi inaugurated the creation of NSE-SGX Connect in collaboration between the National Stock Exchange (NSE) and Singapore Limited (SGX) and the first trading transaction took place on July 29, 2022. .

Also read: Prime Minister Modi inaugurates Deutsche Bank’s IBU at GIFT-IFSC