Budget 2023: P-notes, SGX Nifty trading at GIFT City likely to get a boost

Experts said p-notes issued at GIFT would not boost flows into the onshore markets in a big way but would be used for securities traded at the IFSC

Budgetary sops for the International Financial Services Centre (IFSC) not only help remove key irritants around participatory note (p-note) issuances but also boost trading in SGX Nifty contracts, which is set to begin in four months.

With the new provisions addressing the issue of double taxation faced by overseas investors while distribution of income, foreign portfolio investors (FPIs) are expected to prefer GIFT City as a preferred gateway for dealing in Indian securities.

Legal experts said the budgetary measures would go a long way in shifting offshore derivatives volumes to GIFT City as the region would now become tax neutral