The National Stock Exchange (NSE) today said a court-ordered injunction continues against Singapore bourse SGX launching any India derivative contracts, amid a legal battle between the two exchanges.
The Bombay High Court today deferred until May 26 the hearing on a dispute between the NSE and the Singapore Exchange (SGX) over the latter's plan to launch Nifty-based products beginning this June.
Justice S J Kathawala had passed an interim order yesterday restraining the SGX from launching these new derivative contracts until further notice.
As the NSE has sought relief under the Arbitration and Conciliation Act, the judge today expressed his wish to send the parties to a court-appointed arbitrator to resolve the dispute.
Following the court decision today, the NSE said in a statement that the Bombay High Court after hearing both the parties had granted an injunction against the launch of the new derivative contracts by SGX.
"The matter was heard by the court and has been kept for further detailed arguments on May 26. Until then, the ad-interim injunction granted on May 21, 2018 continues against the launch of new derivative contracts by SGX..." the NSE said.
The NSE further said its index company had filed a petition before the Bombay High Court against the SGX under Section 9 of the Arbitration Act seeking urgent interim reliefs against the marketing, promotion and launch of three new contracts called SGX India Futures, SGX Options on SGX India Futures and SGX India Bank Futures, in terms of its circular dated April 11 2018.
The NSE was represented by senior advocate Abhishek Singhvi and assisted by Avishkar Singhvi, Vivek Menon and Cyril Amarchand Mangaldas.
In April, SGX had announced listing of new Indian equity derivatives products in June. Following the development, NSE had said it was examining the SGX announcement and had also sought more details regarding the proposed products from the foreign bourse.
Prior to this, leading stock exchanges BSE, NSE and Metropolitan Stock Exchange of India had announced in February their decision to stop providing data feeds to overseas exchanges as part of a joint effort to stymie migration of liquidity to overseas markets after SGX introduced trading in single-stock futures of Nifty 50 companies.
Yesterday, the SGX had said it will list new India equity derivatives products in June despite NSE dragging the overseas bourse to court for an interim injunction on the new products.
The leading Indian bourse is making an effort to stop SGX from launching derivatives which could replace its Nifty 50 index.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)