The SGX NIFTY SCENERIO

SGX Nifty is a derivative of the Nifty index, which is traded in the Singapore Stock Exchange In order to acquire
exposure to the Indian stock market especially the Nifty 50 Index traders and investors from all over the world
frequently utilize the SGX Nifty or Singapore Exchange Nifty. However as it became more popular, domestic exchanges
began to worry that it was eroding trade volumes from local platforms.

Enter GIFT Nifty

The Indian government has launched a plan known as the GIFT Nifty, or Gujarat International Finance Tec-City Nifty to
build a GIFT City-based International Financial Services Centre (IFSC). GIFT Nifty's main goal is to offer an onshore trading
platform for Indian stocks that serves both domestic and foreign investors. The Indian government wants to return trade
volumes to the country's local exchanges by promoting trading on GIFT Nifty.

Why Indian government switch SGX to GIFT Nifty

By switching to GIFT Nifty Indian regulators are now able to exert more control over the trading of Indian stocks. It
makes it possible for them to more efficiently monitor and control trade operations preserving openness and market
integrity.

Indian authorities made a deliberate decision to switch from SGX Nifty to GIFT Nifty in order to increase control over the
trading of Indian shares and return trade volume to local exchanges. A step toward making India a more attractive global
financial center is the development of GIFT Nifty within the International Financial Services Centre in GIFT City.

The success of GIFT Nifty, however, would rely on a number of variables, including as market liquidity,legal clarity tax
implications and the investor experience with trading. Market players will keep a close eye on the transition
development and assess how it will affect the Indian financial environment.

Key point:

Derivatives in stock market: A securities with a price that is based on or derived from one or more underlying assets is
referred to as a derivative. A contract between two or more parties based on the asset or assets is the derivative itself

https://insider.finology.in/stock-market/gift-nifty

Name- Himanshu Gupta SEC-D

Roll no – JN23PGD017