Arbitration begins in NSE-SGX matter

The high powered arbitration in the matter of the National Stock Exchange (NSE) and Singapore Exchange (SGX) commenced today, people close to the development said.

The matter is related to a dispute between the NSE and SGX over the latter's plan to launch Nifty-based products in June.

The arbitration in the NSE-SGX case commenced before Justice Vazifdar, they said.

Last month, the Bombay High court had barred SGX from launching new India derivative products and referred the case to arbitration -- to which the Singapore bourse agreed.

It is believed that the Indian exchange in its argument said that the new products of SGX are identical to the existing ones and based on the very same underlying. In fact, every feature of the products and the terms of the products are identical.

The exchange also said that existing exposure and open positions are openly being sought to be migrated to the new products, showing homogeneity, according to people close to the development.

NSE was represented by Abhishek Manu Singhvi assisted by Venkatesh Dhond and Somasekhar Sundaresan.

Considering the sensitivity of the matter it is believed that the hearing before arbitration will continue on a day-to-day basis. Through the week-end over the next week, they noted.

In April, SGX had announced listing of new Indian equity derivatives products in June. Following the development, the NSE had said it was examining the SGX announcement and had also sought more details regarding the proposed products from the foreign bourse.