GIFT City To Now Trade Sensex Derivates Alongside NSE Contracts

BSE Ltd. launched trading in dollar-denominated Sensex derivatives at Gujarat's GIFT City. With a trade window spread over 22 hours, the contracts will follow a three-month cycle, with cash settlements denominated in US dollars.

The contracts will have a minimum price movement of $1, which is also called the minimum ticket size. The trades will be settled on the last Tuesday of the contract month, and maximum open positions for brokers and clients are set at 50 lakh and 30 lakh, respectively. Mark-to-market settlements will be done twice a day for these contracts.

Derivatives trading at GIFT City offers several cost advantages for global investors, like securities transaction tax, stamp duty, and GST reliefs. Additionally, exchange transaction charges on BSE's GIFT City exchange, called the India INX, are also zero.

Vijay Krishnamurthy, chief executive of India INX, said, "With the launch of BSE Sensex derivatives, India INX reinforces its commitment to deepening liquidity, enhancing market access, and positioning GIFT IFSC as a premier global financial centre."

Before BSE's product launch, trading in index-based derivatives at Gift City was facilitated through the National Stock Exchange's NSE International Exchange and the Singapore Exchange's collaborative undertaking.

Shares of BSE Ltd. closed 0.2% higher on Monday compared to a 0.5% decline in the benchmark Nifty index.