NSE says injunction continues against SGX launching new India derivative contracts
New Delhi: The National Stock Exchange (NSE) on Saturday said a court-ordered injunction will continue against Singapore bourse SGX launching any India derivative contracts, amid a legal battle between the two exchanges.
The Bombay High Court today kept the matter for detailed hearing on May 31 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. Following the court decision today, the NSE said, "The matter was heard by the court and has been kept for further detailed arguments on May 31, 2018. Until then, the ad-interim injunction granted on May 21, 2018 continues against the launch of new derivative contracts by SGX," NSE said.
NSE's index company on May 21 had filed a petition before the Bombay High Court against the SGX under Section 9 of 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 dated April 11, 2018.
Pursuant to that, the court had granted an injunction against the launch of the new derivative contracts by SGX.
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.
The NSE was represented by senior advocate Abhishek Singhvi and assisted by Avishkar Singhvi, Vivek Menon and Cyril Amarchand Mangaldas.
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.
Prior to this, leading stock exchanges BSE, NSE and Metropolitan Stock Exchange of India had announced in February their decision to stop providing data feeds to overseas exchanges as part of a joint effort to stymie migration of liquidity to overseas markets after SGX introduced trading in single-stock futures of Nifty 50 companies.
At that time, it was decided the popular SGX Nifty Futures contract will cease to exist after a six-month notice period expiring in August.