Locked in arbitration proceedings with SGX, the National Stock Exchange today said it is working on a "structure" to address the issues and more clarity is likely to emerge in the next two-three weeks.
The two exchanges last month resumed discussions on a potential collaboration in Gujarat's international financial services centre, while the arbitration proceedings were deferred pending outcome of the talks.
The move will help in transition of liquidity from the offshore market to the GIFT City.
"We are in the process of figuring out a structure, which may require regulatory inputs too. We need 2-3 weeks before we get a clarity on the issue. If we are able to come out with a structure then arbitration proceedings will not be required," NSE MD and CEO Vikram Limaye told reporters at the exchange's silver jubilee celebrations function here.
According to Limaye, the two exchanges are engaging and consulting relevant stakeholders including investors and regulators on the proposed collaboration.
Markets watchdog Sebi and Singapore's integrated financial regulator MAS had also discussed amicable resolution of the NSE and SGX matter, among various issues of cooperation.
Since February, the NSE and SGX have been locked in a tussle after the domestic bourse and others decided to stop licensing their indices to foreign exchanges from August. Later in April, SGX announced listing of new Indian equity derivative products from June.
Amid concerns over liquidity migrating overseas, NSE's index company IISL had moved the Bombay High Court, which restrained SGX from launching the new products and referred the matter for arbitration.
"The injunction against the new products..., first imposed by the Bombay High Court, has been extended and continues until completion of the arbitration proceedings," the NSE had said on June 16.
The existing licence for the SGX Nifty contracts stands extended for two successive contract months beyond the arbitration award date, the NSE had said.
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