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."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Microsoft launches lightweight AI model
Gucci-owner Kering posts 10% drop in Q1 sales on sluggish Chinese demand
Hotel Properties prices 5-year notes at 5.1%
Apple to hold launch event on May 7, with new iPads expected
OUE Reit obtains S$600 million unsecured sustainability-linked loan
US: Wall St opens higher as more earnings roll in