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SGX and NSE resume tie-up talks on India's GIFT city

THE Singapore Exchange (SGX) and the National Stock Exchange (NSE) of India have resumed discussions on a potential collaboration in India's fledgling offshore hub after such talks fizzled out.

Tensions arose between the two exchanges over SGX's plans to roll out new India derivatives products two months ago.

The two parties have been engaged in arbitration proceedings over the planned listing of the new derivatives products which SGX had planned to roll out in June to make up for the imminent loss of its flagship Nifty 50 futures products after India pulled the plug on the licencing agreement in February this year.

The rift deepened on May 21 after NSE filed an interim injunction and got its way at the Bombay High Court to bar SGX from launching new India derivatives products.

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Now, however, with the two exchanges coming around to talk once again on a possible tie-up in India's Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC), the arbitrator has granted a deferment of the arbitration proceedings between SGX and NSE's index company IISL, said SGX in a statement.

It added that the directions under the arbitration order remain effective.

The latest announcement follows a discussion by the regulators of both countries on Monday where various issues were brought up, including the "amicable resolution" of the NSE and SGX issue, said the Monetary Authority of Singapore and the Securities and Exchange Board of India in a joint statement.

The regulators agreed to further strengthen their collaboration to benefit their capital markets while also agreeing that NSE and SGX "would carry out necessary discussions to come up with a solution that is acceptable to both parties".