Once again, the Gujarat government makes a significant move to bolster India’s position as a global financial powerhouse. Recently, Gujarat’s Chief Minister launched the Sensex Future and Options contract at none other than our smart city, Gujarat International Fin-Tech City, the GIFT City. This landmark event has marked another milestone in GIFT City’s journey toward becoming a vibrant international financial hub catering to domestic and global investors.
GIFT City's Role in Shaping the Future of Foreign Investment in India
About the Launch
Gujarat's CM, Bhupendra Patel, officially inaugurated the Sensex Futures and Options contracts on February 03 at the energetic India International Exchange (India INX) at the busy GIFT City in Gandhinagar.
A paper claims that Moneycontrol had revealed an exclusive scoop on the soon-to-be-launched Sensex contracts.
Following this debut, worldwide investors will have access to the Sensex Future and Options, enabling direct US dollar investment. These future contracts are cleverly made to reflect the prestigious BSE Sensex index swings.
Given the low USD 1 registration fee, many people can afford it. The last Tuesday of the month assigned for every contract marks the end of trading operations and the last settlement day.
During the unveiling of the contracts, Chief Minister Bhupendra Patel expressed his enthusiasm, stating, "Following the successful launch of Gift Nifty, we are thrilled to announce that the Sensex Futures and Options have also been introduced in GIFT City. India is at the forefront of relentless financial innovation with INX, offering global investors a robust and seamless platform to engage with the Indian market."
The Rise of GIFT City: Transforming Gujarat into a Global Financial Hub
He further emphasized, "The introduction of US-dollar-denominated Sensex Futures and Options on India INX is a pivotal advancement. This development empowers foreign investors to participate directly in the Indian market without the cumbersome procedures typically associated with currency conversion. Consequently, this will foster a closer connection between Indian financial markets and the burgeoning global investment system."
The NSE IX, a subsidiary of the National Stock Exchange, currently provides contracts for GIFT Nifty, which closely replicates the performance of the Nifty 50 index. Established in 2017, India INX stands as the nation's inaugural international exchange, positioned within the innovative GIFT City, paving the way for India’s burgeoning role in global finance.
What are Sensex Future and Options Contracts?
Now that you have the news, let’s understand Sensex Futures and Options (F&O). Futures and Options (F&O) are financial derivatives linked to the Bombay Stock Exchange (BSE) Sensex index, which serves as a benchmark for the performance of the top 30 companies on the BSE.
These contracts enable investors to speculate on market trends, protect their portfolios, or boost returns through strategic trading. Introducing these contracts in GIFT City is a strategic initiative to provide international investors with easy access to the Indian equity market, all within a regulated and tax-efficient framework.
Explore Premium Properties at GIFT City
Wrap Up
The inauguration of Sensex Future and Options contracts at GIFT City has been a significant step for India and FDIs, positioning the country as a financial superpower. With ongoing advancements and infrastructure enhancements, we anticipate an influx of financial innovation and investment in the area.
This journey is just beginning, and the outlook is bright—not only for GIFT City or Gujarat but for India's standing in the global financial arena.
