The introduction of GIFT NIFTY has predominantly transformed the Indian stock market for the best. The intense shift in the graph of financial aspects took an upswing with tremendous response in the trading sphere.
The emergence of GIFT NIFTY concept has brought a variance in the perception of the index trading which came along the domestic markets(Indian stock market). With gaining significance, it has become the couch potato in the stock markets and amongst the investors.
But, it is indeed crucial for one as a stepping investor to know what is gift nifty and how to trade in gift nifty. To know more about it, consider reading the blog to the end.
What is GIFT NIFTY?
To learn what gift nifty means let us first understand the GIFT NIFTY full form. The GIFT NIFTY full form is nothing too complicated but The Gujarat International Finance. With this emergence, Indian finance has witnessed a groundbreaking scenario. It incorporates the listed companies on the NSE I.e National Stock Exchange in the boundaries of GIFT City, which is considered to be an international financial services centre in Gujarat.
This index enables in gauging the performance of the listed companies and therefore furnishes some of the profound insights. The insights comprise the trends in the market that eventually fall in the boundaries of GIFT City framework.
This major shift was also to nurture the the ecosystem for critical economic activities with a standard prospects of the regulations, policies and taxation around the globe.
The overall market participants and the investors can hold the GIFT NIFTY to comprehend the relevant dynamism and advancements within this financial space. Which in addition helps with prompt investment decision making. To bring out much relevance, the gift nifty trading timings of Nifty index helps with the evaluation of companies’ overall performance in the GIFT City which therefore foster the up to date investment decision activity.
In a press release, Injeti Srinivas, the chairman of the International Financial Services Centres Authority (IFSCA), said: “The transition will consolidate the international liquidity pool for NIFTY products and will give a boost to GIFT-IFSC as a global hub for international financial products and services”.
Difference between SGX NIFTY and GIFT NIFTY
SGX NIFTY and GIFT NIFTY have some of the crucial differences that need to be understood and below are a few:
Trading Locations
The SGX nifty is the Nifty index futures which can be traded on the Singapore Exchange. On the other hand, GIFT nifty represents the figures of NIFTY index futures which could be only traded on GIFT City.
Market Accessibility
SGX nifty facilitates the investors around the globe to proceed to trade in the nifty market even though Indian markets are closed. So this allows 24 hours of trading. While, on the other part of the spectrum, GIFT nifty functions within the boundaries of Indian trading hours. Which therefore provides a platform to the investors to trade nifty futures directly.
Regulatory Environment
The SGX nifty functions under the regulatory system of Singapore Exchange Regulations while the GIFT nifty operates around the guidelines of SEBI (Securities Exchange Board of India).
Why was the shift needed?
The second biggest contribution to SGX’s equity derivative is the Nifty derivative whose volume in the fiscal year 2022 stood at 29.9 Million contracts.
Singapore being the busiest offshore financial centre which delivers minimal taxation rates, decent operation facilities and seamless registration. This has captivated most if the traders oversee, due to its hassle free registration. However with an extensive rigidity Securities and Exchange Board of India (which is the highest regulatory body for commodities market and Securities in India)
The SGX Nifty was optimally utilised by the traders to be updated with an early indication of Nifty 50 even before the opening of the Indian market. Which therefore takes advantage of the time difference between the countries, India and Singapore.
How to trade GIFT NIFTY stocks?
Trading platform for the Nifty index provides enormous mechanisms and methodologies for trading. Potential traders are enabled to access the same through the authorised platforms which provide a better user-friendly interface along with the date of real-time market.
Such platforms aid the investors or traders to place various orders, alongside furnishing better flexibility and ensuring good control over their respective strategies that come around the trading.
As soon as the order is placed, the process for settlement begins. It also goes by the T+2 settlement cycle. This process aids through the Central Counterparty Mechanism which is also called as CCP.
To get along with the platform, traders will be required to have a trading account with a broker who is registered or under a financial institution that offers access. They should also make themselves familiar with the trading procedures, settlement process and order types which bring out the effective navigation.
How does GIFT NIFTY benefit the customers?
GIFT nifty, very well amalgamates with the domestic markets, promotes accessibility and enhances the potential of the liquidity, simultaneously acts as an advantage to the investors.
Alongside, the domestic markets provide the investors to take perks that come along the real time price movements and then to respond quickly to the same in concern with the market developments. This indicates that the investors can actively participate in the market on the crucial trading durations.
Conclusion
GIFT NIFTY launch date was July 3, 2021. Since then, the popularity of it has taken an upswing around the nation as it comes in connection with the Singapore stock exchange. This has been one of the significant steps towards the global finance space. It was earlier functioned only in Singapore but with this initiation it will be now traded in our very own country.
All in all, this blog has vividly discussed some of the essential aspects that come around NIFTY GIFT and how it connects the bigger arena with international and onshore GIFT participants. This very act will create the largest pool for liquidity and for nifty products.
Reference : en.wikipedia.org/wiki/GIFT_Nifty
