Central Idea

GIFT NIFTY (formerly known as SGX NIFTY) commenced trading from GIFT City in Gujarat, marking the first cross-border initiative between India and Singapore’s capital markets.
The trading session witnessed over 30,000 trades, signifying the growing significance of this collaboration.

What is GIFT NIFTY?

The migration to GIFT NIFTY was initiated by PM Modi in July 2022.
GIFT NIFTY plays a crucial role in expanding GIFT IFSC’s reach to foreign investors and enhancing the capital market ecosystem in GIFT City.
The collaboration between SGX and NSE strengthens the connection between two rapidly growing economies.
NSE IX is restricted from entering similar arrangements with other exchanges, providing stability to the partnership.
The initial five-year contract can be extended for an additional two years.

GIFT NIFTY establishes a trading link where trading and matching take place in India, while clearing and settlement occur in Singapore.
It operates from 6:30 am to 3:40 pm in the Asia time zone.
The second session, from 4:35 pm to 2:45 am (next day), targets investors from the United States and Europe.

Revenue sharing: The five-year contract establishes a 50:50 revenue-sharing arrangement between Singapore Exchange (SGX) and NSE International Exchange (NSE IX).
Initial revenue split: For Singapore-generated business, SGX will receive 75% of the revenue, while NSE will receive the remaining 25%.
IFSC business: NSE will retain 75% of the International Financial Service Centre (IFSC) business, with the remaining 25% going to SGX.
Future volume-based sharing: Once a “threshold volume” is reached, the revenue sharing will be equally split between both entities.

Ceasing SGX NIFTY: On June 30, trading on SGX NIFTY in Singapore ended, with the entire trading volume and liquidity transitioning to GIFT IFSC.
Rechristened GIFT NIFTY: The trading platform was renamed GIFT NIFTY, offering four products: GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT derivatives contracts.

GIFT city is India’s first operational smart city and international financial services centre (much like a modern IT park).
The idea for GIFT was conceived during the Vibrant Gujarat Global Investor Summit 2007.
The initial planning was done by East China Architectural Design & Research Institute (ECADI).
Currently approximately 225 units/companies are operational with more than 12000 professionals employed in the City.

Key features

The entire city is based on the concept of FTTX (Fibre to the home/office).
The fiber optic is laid in fault-tolerant ring architecture so as to ensure maximum uptime of services.
Every building in GIFT City is an intelligent building.
There is piped supply of cooking gas. India’s first city-level DCS (district cooling system) is also operational at GIFT City.