About Gift Nifty
Gift Nifty is a derivative contract of the Nifty index, which was traded on the Singapore Stock Exchange to track the performance of India’s Nifty 50 index. SGX Nifty was rebranded as GIFT Nifty and moved to NSE International Exchange (NSE IX) in Gandhinagar, India.
Hedge funds and institutional investors use Gift Nifty to hedge their exposure to the Indian stock market. Traders also use it to predict the future direction of the Nifty 50 index.
All SGX Nifty derivative contracts worth $7.5 billion will now trade on NSE IX instead of the Singapore exchange. NSE IX, a subsidiary of NSE based in Gift City, will now include four financial products, namely GIFT Nifty 50, GIFT Nifty Financial Services, GIFT Nifty Bank and GIFT Nifty IT Derivative Contracts.
Any Indian or foreign registered or non-registered trading member can trade in GIFT NIFTY products after obtaining NSE IX membership with office through branch model or subsidiary. However, Indian retail investors will not be able to get exposure to GIFT Nifty products under the Liberalized Remittance Scheme (LRS).