BSE Introduces Sensex Derivative Contracts at GIFT City

The Bombay Stock Exchange (BSE) has launched trading in US dollar-denominated Sensex derivative contracts at the International Financial Services Centre (IFSC) in GIFT City, Gujarat. These contracts will be traded on India INX, BSE’s international exchange, and will operate under a three-month trading cycle.

Bombay Stock Exchange (BSE) share price stands at ₹5,524.90 as of February 4, 2025, up ₹109.50 (2.02%) for the day, showing a 139.82% rise over the past year and a 1,448.24% gain since its listing.

Contract Details and Settlement Process

The minimum price movement for these contracts is set at $1. The final settlement will take place on the last Tuesday of the contract month. All trades will be settled in cash and denominated in US dollars. Mark-to-market settlements will occur twice daily. Brokers can hold open positions up to 50 lakh contracts, while clients are limited to 30 lakh contracts.

Trading Hours and Tax Benefits

The contracts offer a 22-hour trading window, making it accessible across different time zones. Trading at GIFT City comes with tax benefits such as exemptions from securities transaction tax (STT), capital gains tax, and stamp duty. Additionally, BSE’s India INX does not impose exchange transaction charges.

Existing Derivative Trading at GIFT City

Before this launch, index-based derivatives at GIFT City were primarily available through NSE’s International Exchange (NSE IX). NSE IX offers GIFT Nifty contracts, which replaced SGX Nifty after its migration from the Singapore Exchange in July 2023.

In January 2025, GIFT Nifty recorded an average daily turnover of $95 billion.

Industry Response

The launch event was attended by Gujarat Chief Minister Bhupendra Patel, who noted that the availability of Sensex Futures & Options at GIFT City allows foreign investors to trade without the need for currency conversion. BSE officials stated that this is aimed at increasing liquidity and participation in the international derivatives market.

India INX’s Growth at GIFT City

India INX, launched in 2017, has been growing as a financial hub. In FY25, it recorded an average daily turnover of $206 million. The introduction of Sensex derivatives is expected to increase trading volumes at the exchange.

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