The National Stock Exchange (NSE) today said the Bombay High Court has barred SGX from launching any India derivative contracts and directed settlement of the matter through arbitration to which the Singapore bourse has agreed.
The court today heard the matter with regard to a dispute between the NSE and the Singapore Exchange (SGX) over the latter's plan to launch Nifty-based products beginning this June.
"The petition was heard by the Bombay High Court on May 29, 2018 when the Bombay High Court reaffirmed the injunction granted on May 21, 2018 and after hearing both parties, ordered that SGX will not launch new derivatives contracts as per its circular dated April 11, 2018," the NSE said in a statement.
"The matter has now been referred to arbitration," it said adding that SGX has consented to these directions of the court.
According to sources, the NSE feels the proposed products of SGX in substance are identical to the existing SGX Nifty Futures except for the name change.
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The exchange said it is committed to protecting and preserving its proprietary rights as it relates to its products and indices.
Also, it has worked in good faith with SGX over the last several months in finding a collaborative solution that would be in the best interests of investors.
"The Indian capital markets are open to international investors and the policy and regulatory measures have streamlined and facilitated ease of access to Indian markets for international investors," it added.
The NSE strongly believes that investors should use licensed and legally permissible products to access Indian markets and international investors will have the Nifty 50 available on SGX till August 12, 2018.
The bourse said it remains committed to providing open and ease of access to Indian markets for international investors and to facilitate an orderly transition of liquidity from SGX to Indian markets onshore or in NSE IFSC in GIFT City.
Earlier in the day, the Singapore Exchange said it will reschedule the launch of new India derivatives products pending the outcome of the arbitration.
NSE's index company IISL on May 21 had filed a petition before the Bombay High Court against the SGX under the Arbitration Act seeking urgent interim reliefs against the marketing, promotion and launch of three new contracts called SGX India Futures, SGX Options on SGX India Futures and SGX India Bank Futures, in terms of its circular issued on April 11, 2018.
Pursuant to that, the court had granted an injunction against the launch of the new derivative contracts by SGX.
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.
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