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Singapore Exchange to list Indian equity derivative products in June


(Reuters) - Exchange Ltd (SGX) on Wednesday said it would list Indian in June, a move which follows a decision by India's three main bourses to stop licensing their indexes to overseas exchanges.

The Indian exchanges' unexpected decision in February, which hit Exchange's shares, was aimed at preventing share trading from moving abroad.

The exchange said in February it would launch to its flagship Indian equity index derivatives before its licence agreement with of (NSE) expired in August 2018.

The new derivatives would be in addition to existing single-stock futures given that these contracts have attracted active participation from global institutional clients since their launch, SGX said.

India's three main stock exchanges - NSE, and - took steps to stop losing trade to overseas rivals after SGX introduced trading in single-stock futures contracts.

Following Exchange's announcement on Wednesday, NSE said it was examining the new planned by SGX to see if they complied with the exchanges' February action.

"We will also have a discussion with other exchanges and the regulator once we have a better understanding and then determine course of action," NSE said in a statement on Wednesday.

The Indian exchanges' decision in February was fully endorsed by the

The step was also aimed at boosting interest in the international financial centre being developed in Narendra Modi's home state of Gujarat, called International Finance Tec-City, or GIFT City.

In Wednesday's statement, the exchange also said it was continuing to evaluate a joint trading and clearing model in GIFT City between the NSE and SGX.

"We are still exploring a solution that would bring the liquid international market directly into GIFT city, in a way that meets our clients' regulatory requirements while growing the overall market," Michael Syn, at SGX, said in the statement.

"In the meantime, we will continue with our new equity derivative products, which international portfolio investors need to maintain exposure to India," he said.

(Reporting by in Mumbai and Susan Mathew in Bengaluru; Editing by and Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 20:09 IST