GIFT Nifty

About Gift City – Gift Nifty

GIFT City is India’s maiden international financial services centre. Located in between Ahmedabad and Gandhinagar, this under-construction business district is India’s first fully-operational greenfield smart city. It will provide an ecosystem for crucial economic activities with globally benchmarked regulations, taxation, and policies. GIFT Nifty, formerly known as SGX Nifty, is an index derivative contract. Derivative contracts are financial instruments whose value is derived from an underlying asset. In this case, these derivatives are based on the price of company stocks. While people can directly trade company stocks with each other, they can also separately trade these derivatives

The renowned SGX Nifty, which has long served as a tool for traders and investors to forecast the Nifty’s opening ahead of the domestic market, has undergone a rebranding and is now known as Gift Nifty. The entire spectrum of Nifty derivative contracts, amounting to a substantial value of $7.5 billion, previously traded on Singapore’s SGX Nifty, has been relocated to the NSE IX in India.

In simple terms, the Nifty futures contracts denominated in US dollars will now be traded on the NSE IX, situated within the GIFT City Special Economic Zone (SEZ), instead of the Singapore Exchange. This transition has been facilitated following the necessary regulatory approvals from both the Monetary Authority of Singapore (MAS) and the International Financial Services Center Authority (IFSCA).