These zero-day-to-expiry contracts are aimed at providing traders more flexibility and liquidity in hedging and speculative strategies, aligning India’s offshore derivatives market with global practices.
National Stock Exchange will offer a daily expiry on GIFT Nifty contracts to foreign investors via a tax-neutral jurisdiction as it seeks to attract more global funds, diverging from domestic markets’ tighter equity derivatives rules.
GIFT Nifty is a dollar-denominated derivative contract of the Nifty 50 traded on NSE subsidiary, the NSE International Exchange (NSE IX) in Gujarat International Finance Tech (GIFT) City. In August, the contract crossed $100 billion in terms of monthly turnover.
Zero-day-to-expiry contracts will be introduced with effect from October 13, the NSE said in a notice late on Monday. There will be five weekly expiries from Monday to Friday, expiring on a daily basis, NSE said.
Resident Indians are not allowed to trade in these contracts.