Market regulators in India, Singapore task SGX and NSE to 'amicably resolve' futures dispute

Following months of uncertainty, market regulators of India and Singapore stepped in to ensure that the NSE and SGX “come up with a solution that is acceptable to both the parties”.

The regulators’ move is the latest effort to resolve a quarrel that erupted earlier this year, after the Singapore bourse announced plans to launch single-stock futures based on some of India’s largest companies. Tensions escalated when NSE sued SGX after cutting off licensing ties.
The regulators’ move is the latest effort to resolve a quarrel that erupted earlier this year. Photo courtesy: Wikimedia

Earlier this week, the Securities and Exchange Board of India (SEBI) and Monetary Authority of Singapore (MAS) held discussions on various issues of cooperation, including the amicable resolution of the NSE and SGX issue. Both regulators agreed that the collaboration between both authorities would be further strengthened so as to derive benefits for capital markets of both the countries. They issued a joint statement to this effect.

“Singapore Exchange (SGX) and the National Stock Exchange (NSE) have resumed discussions on a potential collaboration in Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC),” a joint statement issued by SGX and NSE in response read. They also stated they will jointly engage and consult relevant stakeholders on the proposed collaboration.

As a result of the resumption, the arbitration proceedings between SGX and IISL, the NSE’s index company, have been deferred
As a result of the resumption, the arbitration proceedings between SGX and IISL, the NSE’s index company, have been deferred. Photo courtesy: SGX

 

Various market experts and analysts have stated that the resumption of dialogue is a positive step towards resolving the dispute. For India, an amicable solution would go a long way towards mitigating damage to its MSCI Inc. rating, sources said.

As a result of the resumption, the arbitration proceedings between SGX and IISL, the NSE’s index company, have been deferred, though an order extending an 18-year old licensing agreement between the two exchanges for NSE’s benchmark Nifty contracts beyond August, and for at least two months after the end of arbitration, remains effective.

The regulators’ move is the latest effort to resolve a quarrel that erupted earlier this year, after the Singapore bourse announced plans to launch single-stock futures based on some of India’s largest companies. Tensions escalated when NSE sued SGX after cutting off licensing ties.

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CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indian Diaspora across Singapore, US, UK and Dubai. Connected to India covers developments around Indians abroad, informing, engaging and entertaining its audiences.

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