In a comprehensive shift from SGX Nifty, starting July 3, all orders of the same will be completely transferred to the index's new avatar called GIFT Nifty. This comes as the early indicator of the Indian market shifts base from Singapore Exchange to NSE International Exchange (NSE IX) in Gandhinagar, Gujarat.
"Pursuant to the full-scale switch from July 3 from Singapore Exchange (SGX) to NSE-IFSC Exchange in the International Financial Services Centre (IFSC) in GIFT City - Gandhinagar, the derivatives index SGX Nifty will be renamed to GIFT Nifty," said an NSE spokesperson.
The transition to GIFT Nifty will mark a significant milestone for the exchange. According to a statement released by the exchange, the new identity of GIFT Nifty is closely associated with the National Stock Exchange's (NSE) flagship index, Nifty 50, and this move aims to strengthen the association between the two and enhance the brand's recognition among investors.
“The NSE International Exchange (NSE IX) is rebranding the SGX-Nifty product as the GIFT-Nifty. The reason for this rebranding is that from June 30, the entire trading of SGX-Nifty will cease at SGX and the entire volume will shift to GIFT IFSC from July 3,” said Injeti Srinivas, Chairman, International Financial Services Center Authority (IFSCA), the unified regulator at Gift IFSC at Gandhinagar.
Here are some key points one must know about this development:
- NSE International Exchange (NSE IX) revealed a fresh brand identity for GIFT Nifty, marking a significant shift from SGX Nifty, effective from July 3.
- The new identity of GIFT Nifty has been carefully designed to bring in line with the National Stock Exchange's (NSE) prominent index, Nifty 50.
- NSE IX-SGX Connect is all set to commence full-scale operations from July 3, offering international investors the opportunity to partake in India's growth prospects by accessing Nifty products through NSE IX in GIFT City, Gujarat.
- The NSE IFSC Exchange, located in Gujarat International Finance Tec-City (GIFT City), will be responsible for matching all orders from SGX, in line with the transition.
- GIFT City, endorsed by Prime Minister Narendra Modi, serves as India's tax-neutral financial services hub, with the objective of rivalling prominent financial centres such as Dubai and Hong Kong.
– The GIFT Nifty is an umbrella brand which will include four products : GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services and GIFT Nifty IT derivative contracts.
- The trading will happen for almost 21 hours starting at 6:30 am when the Singapore Exchange opens. It will happen in two sessions and will overlap Asia, Europe and US trading hours.
According to the NSE spokesperson, the necessary approvals have been secured from the Monetary Authority of Singapore (MAS), the regulatory body in Singapore, and the International Financial Services Centre Authority (IFSCA), the regulatory authority for the Gift International Financial Services Centre (IFSC).
Ashishkumar Chauhan, MD & CEO of NSE, said, “People trading on the SGX will not find any difference with this shift. They will continue to place orders like they have been doing for the last 20 years. The servers that match the orders have been shifted to Gandhinagar. Everything else remains the same.”
By facilitating the access to Nifty products through the GIFT Nifty platform, NSE IX intends to create a seamless channel for global investors to engage in India's vibrant stock market. This transition represents a significant step towards reinforcing the exchange's commitment to expanding international investment opportunities and fostering the growth of India's financial markets.