BSE launches trading in Sensex F&O at GIFT City: All you need to know

BSE has launched U.S. dollar-denominated Sensex derivative contracts at India International Exchange (India INX) in GIFT IFSC on Monday. Currently, only NSE, through its SGX partnership, offers Nifty-based derivatives at GIFT City. In July 2023, SGX Nifty was rebranded as GIFT Nifty under NSE IX, reaching a $95 billion average daily turnover in January.

“The new product will allow global investors to trade and settle BSE Sensex derivatives in US Dollars, facilitating greater participation from international traders and investors. With 22 hours trading window, it aims to foster deeper integration of India’s financial market with global financial system,” the exchange’s press release said.

“The launch of BSE Sensex derivatives at India INX represents a key step in broadening access to India's benchmark index for global investors. As one of the most recognized indices representing the Indian equity market, BSE Sensex derivatives will offer international investors an efficient avenue to participate in India's growth story,” said Sundararaman Ramamurthy, MD & CEO of BSE.

“In the last 20 months, you have seen that BSE Sensex derivatives have traded around 40 billion contracts,” Ramamurthy added.

GIFT City offers cost advantages for global investors with zero charges of STT, Stamp Duty, GST, and exchange transaction charges. The exchange also provides a co-location facility at no cost. Non-resident investors pay no capital gains tax on exchange-traded derivatives and can open a trading account without a PAN.

Sensex derivatives have a minimum investment of $1, a three-month trading cycle, and cash settlements in USD. Contracts settle on the last Tuesday of the contract month.