More products being planned for GIFT City trading network
International investors have boosted the trading volume of NSE NIFTY in GIFT City, and traded value of NIFTY on NSEIX has witnessed a 93% CAGR over the past 5 years from US$7 billion in 2016-17 to US$730 billion in FY 23-25.
Neeraj Kulshrestha, MD & CEO of NSE International Clearing said at the Singapore Fintech Festival (SFF) opening on 4 Nov, that the concerns relating to the relocation of NSE Nifty to NSEIX in GIFT City in July 2023, have been overcome as the volumes have continued to grow post the transition from US$60 billion with Open interest trade of US$9 billion in Jul 2023, to US$100 billion and Open interest of USD to 20 billion + in Oct of 2024, reflecting a strong confidence in the India Growth story.
Foreign investors will continue to increase participation in GIFT City NIFTY based on the overall India growth trajectory, as has been detailed by other speakers – the potential of continuous volume growth “is bound to happen”, said Kulshrestha, adding that some 140 plus funds are now registered in the dollar-denominated investment flow in the duty-free zone.
The access to invest and trade in GIFT City is much easier, he added.
“People are investing in NIFTY which is an aggregation of 50 large companies of the country and this is the best way to participate in the India Growth story,” he said on the sidelines of the ongoing SFF week, held 4-8 Nov with ‘Insights Forums’ on the first two days.
There is confidence among investors in the Indian economy and GIFT City, he underlined.
More and more products are being planned for listing on the GIFT City, including Equity, Sovereign Green bonds and derivatives on other key indices for building GIFT City into an ecosystem of international repute.
“An aggressive pace of product development is underway, especially building on the boost in volume seen for NIFTY,” said a trader who declined to be named as he remains privy to some of the products being lined up for launch soon. Fiinews.com
