National Stock Exchange of India Ltd. has applied with the Bombay High Court for an interim injunction on India derivative products offered by Singapore Exchange Ltd.
The Singapore bourse said May 22 that it would defend the action, and that clients can continue to trade as normal. SGX added that its new India derivative products have obtained regulatory approval and will list in June.
Indian stock exchanges NSE, BSE Ltd. and Metropolitan Stock Exchange of India said in February that they would stop providing data on Indian stock prices and indexes to foreign exchanges over concerns that trading in India-listed securities has been moving beyond the country's borders.
The exchanges had planned to terminate licensing agreements for Indian indexes to foreign exchanges and stop providing market data for trading or settling of any products, including derivatives.
Michael Syn, SGX's head of derivatives, said the Singapore stock exchange remains open to working with the NSE and other stakeholders to develop a solution that would allow institutional investors to maintain their current portfolio risk exposure to the Indian capital markets.
