Capital Markets: Challenges and Developments

GIFT NIFTY: Connecting India and Singapore’s Capital Markets


From UPSC perspective, the following things are important :

Prelims level: GIFT NIFTY

Mains level: NA


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.


  • 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.

Operating time

  • 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.

Deal between SGX and NSE

  • 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.

Back2Basics: GIFT City, Gandhinagar

  • 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.


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