1 hr ago
GIFT Nifty Replaces SGX Nifty as Key Indian Market Indicator
SGX Nifty and GIFT Nifty are contracts linked to the same Indian stock market index.
SGX Nifty used to trade in Singapore, but GIFT Nifty took its place in July 2023.
GIFT Nifty trades at NSE IX in GIFT City, Gujarat.
The two contracts have different regulators and tax arrangements.
GIFT Nifty has tax exemptions for some eligible foreign investors.
Its trading sessions cover much of the day and night.
Both contracts are settled in US dollars.
They let investors follow or trade on Indian markets outside regular NSE hours.
GIFT Nifty replaced SGX Nifty in July 2023, with both contracts tracking the same underlying index.
SGX Nifty traded on the Singapore Exchange; GIFT Nifty trades on NSE IX in GIFT City, Gujarat.
SGX Nifty was regulated by Singapore’s Monetary Authority of Singapore, while GIFT Nifty falls under India’s IFSCA.
Eligible foreign investors may receive exemptions from Securities Transaction Tax, GST, and capital gains tax on qualifying GIFT Nifty trades.
Both contracts settle in US dollars; GIFT Nifty’s two sessions run from 6:30 AM to 3:40 PM IST and 4:35 PM to 2:45 AM IST.
- Who
- Global investors and traders using contracts linked to the Indian equity market.
- What
- GIFT Nifty replaced SGX Nifty, retaining the role of providing exposure to the Indian market outside regular NSE hours.
- Where
- GIFT Nifty trades on NSE IX in GIFT City, Gujarat; SGX Nifty traded on the Singapore Exchange.
- When
- GIFT Nifty replaced SGX Nifty in July 2023.
- Why
- The move brought the contract to India while keeping it accessible to foreign participants.
SGX Nifty
GIFT Nifty
Exchange and location
SGX Nifty
Traded on the Singapore Exchange, a familiar venue for international investors.
GIFT Nifty
Trades on NSE IX in GIFT City, Gujarat, bringing the contract to India while remaining accessible to foreign participants.
Regulation
SGX Nifty
Regulated by Singapore’s Monetary Authority of Singapore, a framework familiar to many international institutions.
GIFT Nifty
Regulated by India’s IFSCA under rules specific to GIFT City and within Indian law.
Tax arrangements
SGX Nifty
The article describes tax benefits associated with Singapore’s treaties and investor-friendly rules.
GIFT Nifty
The article says eligible foreign investors may be exempt from Securities Transaction Tax, GST, and capital gains tax on qualifying trades.
Key facts
- Replacement
- GIFT Nifty replaced SGX Nifty in July 2023.
- Underlying
- Both contracts track the same underlying index.
- GIFT Nifty exchange
- NSE IX, located in GIFT City, Gujarat.
- Regulators
- SGX Nifty was regulated by MAS; GIFT Nifty falls under IFSCA.
- GIFT Nifty sessions
- 6:30 AM–3:40 PM IST and 4:35 PM–2:45 AM IST.
- Settlement currency
- Both contracts settle in US dollars.
- Eligible foreign investors’ tax treatment
- Qualifying investors are exempt from Securities Transaction Tax, GST, and capital gains tax on eligible trades, according to the article.
Sources
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