With the start of trading from July 3 on the NSE International Exchange (NSE IX), Gift Nifty derivative contracts will be available for almost 21 hours - longer than when the SGX Nifty contracts were available on the Singapore Exchange. Nifty derivatives traded on the Singapore Exchange have been moved to NSE IX and renamed Gift Nifty.
As part of Gift Nifty, NSE IX now offers dollar-denominated Nifty derivatives under the regulatory framework of the International Financial Services Center Authority (IFSCA).
With the partnership between NSE IX and SGX, Gift Nifty orders from SGX members can be routed to the NSE IFSC for trading and execution with clearing and settlement handled by SGX Derivatives Clearing.
Initially, Gift Nifty 50, Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT derivative contracts will be available on NSE IX, and gradually other indices will be added. Injeti Srinivas, Chairperson of IFSCA, said the organization aims to develop IFSC as a global gateway for inbound and outbound international financial services.
As part of the unveiling of the new identity, Ashishkumar Chauhan, MD and CEO of NSE, said Gift Nifty would be a catalyst for GIFT City to become one of the world's largest price setters.
Towards promoting ease of doing business for foreign entities, IFSCA plans to implement a single-window clearance system. This single platform will make available not only IFSCA clearances, but also no-objection certificates from other domestic regulators, Srinivas said.
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