GIFT City launches Sensex derivatives trading alongside NSE contracts

BSE Ltd. has launched trading in dollar-denominated Sensex derivatives at Gujarat's GIFT City, marking a significant step in expanding its global reach. The trading window will operate for 22 hours, with contracts following a three-month cycle and cash settlements in US dollars. The contracts will have a minimum price movement of $1, known as the minimum ticket size, and will be settled on the last Tuesday of each contract month. The maximum open positions for brokers and clients have been capped at 50 lakh and 30 lakh, respectively, with mark-to-market settlements occurring twice daily.

This new venture offers several cost benefits for international investors, including exemptions from securities transaction tax, stamp duty, and GST. Furthermore, exchange transaction charges on BSE's GIFT City exchange, India INX, are currently set to zero.

Vijay Krishnamurthy, CEO of India INX, emphasized the strategic importance of the launch, stating, "With the introduction of BSE Sensex derivatives, India INX reaffirms its commitment to improving liquidity, broadening market access, and solidifying GIFT IFSC's position as a leading global financial hub."

Prior to BSE's offering, index-based derivatives at GIFT City were traded through the National Stock Exchange's NSE International Exchange and a collaboration with the Singapore Exchange. Shares of BSE Ltd. ended the day 0.2% higher on Monday, in contrast to a 0.5% dip in the Nifty index.