SGX heads for arbitration with NSE over Nifty dispute

THE Singapore Exchange (SGX) on Tuesday said the Bombay High Court has ordered for the lawsuit filed against SGX by a unit of the National Stock Exchange of India (NSE) to be settled through arbitration. The decision on the injunction is expected by June 16.

NSE's subsidiary, the India Index Services and Products Ltd (IISL), on May 21 filed an interim injunction against the upcoming launch of SGX's new India derivatives products. SGX said it had been unable to contest this injunction as it was not given notice of its application for the injunction.

"SGX will contest the interim injunction and reserves all rights in respect of damages caused by IISL's action," it said.

SGX noted that given the "uncertainty" that was caused by the interim injunction, it will "reschedule" the launch of its new India derivatives products, pending the outcome of the arbitration. The products were meant to be launched next week, on June 4.

SGX will also continue listing SGX Nifty contracts until August 2018, as contractually provided for under its licence agreement.

It added that IISL's action has adversely affected international investors who rely on SGX's platform to manage the risks of their exposures to the Indian market, and significantly diminishes access to, and interest in, the capital markets in India. "SGX remains open to a collaborative long-term solution that will benefit Indian markets."