SGX Nifty - NSE and BSE STOP Derivative Trading on Foreign Stock Exchanges

SEBI barred Indian Stock Exchanges to stop sharing indices data with foreign stock exchanges for derivative trading. This action is taken to increase liquidity in the Indian Stock Market. In laymen terms, the derivative trading of Indian Stocks on Foreign Exchanges is banned. Recently, the contribution of SGX Nifty in Future contracts volume of NSE increased to more than 50%. One of the key reason is that the Singapore Stock Exchange allowed the single stock future contract of Top 50 Indian Stocks. Secondly, the FII's are preferring to hedge their cash positions in Indian Share market from SGX Nifty because of dollar denominated contracts and tax advantage after LTCG tax is introduced in India. The following are two exemptions 1. There is NO restriction in the ETF money. The FII's or FPI's can invest the money through ETF route as the money will come to India. 2. The Dollar denominated derivative trading is possible in GIFT city i.e. International Financial Services Centre in India. This is good news for Retail Investors in India as it will Stop speculation and manipulation in the Indian Stock Market by big investors. It will help retail investors to predict the market movement and generate profit in Stock Market. If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language. For more such interesting and informative content, join me at: Website: T: G+: #NitinBhatia

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