Both bourses are locked in a tussle after Singapore Exchange (SGX), in April, announced listing of new Indian equity derivative products from June.
The National Stock Exchange today said a final decision is expected by the first week of February 2019 on the arbitration proceedings with Singapore Exchange regarding launch of new derivative products linked to its indices.
Both bourses are locked in a tussle after Singapore Exchange (SGX), in April, announced listing of new Indian equity derivative products from June.
Last week, an arbitral tribunal restrained the SGX from launching any new derivative products linked to NSE’s indices. However, it allowed continuation of existing SGX-Nifty contracts.
Against this backdrop, the NSE today said the “tribunal has fixed the final dates for arbitration and the award is expected by the first week of February, 2019”.
Amid concerns over liquidity migrating overseas, the 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.
According to the release, the injunction against the launch of new products, first imposed by the Bombay High Court, continues.
“SGX has been restrained from launching or listing any new derivative products linked to IISL Indices or NSE and NSE IFSC equity derivative products for a period of three weeks from the final arbitration award.
“The existing license for the SGX Nifty contracts will stand extended for two successive contract months beyond the final arbitration award,” the release said.
On June 16, the SGX said the arbitration proceedings are continuing and the hearings on evidence are expected to commence in early 2019.
In a statement, the SGX had also said that it has been granted a licence extension to continue the listing and trading of SGX Nifty contracts beyond August 2018.
The arbitration proceedings are going on before Justice Vazifdar, former Chief Justice of the Punjab and Haryana High Court.
The arbitration is between India Index Services and Products Ltd and Singapore Exchange Derivatives Trading Ltd and others.
