NSE files petition in the Bombay High Court seeking injunction against SGX

Team SoOLEGAL 24 May 2018 2:30pm

NSE files petition in the Bombay High Court seeking injunction against SGX

Latest Update: NSE-SGX Dispute: HC extends stay on SGX's product launch

The Bombay High Court today extended an injunction against the SGX’s product launch. The HC’s decision came after NSE challenged the move.

The court will continue hearing arguments in NSE-SGX row on Saturday, May 26.

Story so far (3:00 PM):

The National Stock Exchange (NSE) has filed a petition in Bombay HC seeking an interim injunction on the products that Singapore Exchange (SGX) is planning to launch on June 4.

The petition has been filed by NSE in an attempt to stop SGX from launching its new India equity derivative products – that could “replace the Nifty 50 contracts that have traded in the city-state for 18 years”.

The matter was mentioned before Justice S.J. Kathawalla on Monday, who restrained the SGX from launching derivatives until further notice.

On April 11, SGX made an announcement about listing of its new Indian equity derivatives products in June. Soon after the announcement, NSE said that “it was examining the SGX announcement and had also sought more details regarding the proposed products from the foreign bourse”.

On February 9, the India's three leading bourses – BSE, NSE and Metropolitan Stock Exchange of India – announced their decision to halt providing data feeds to overseas exchanges to avert trading volumes from moving offshore.

NSE moved the SC seeking an interim relief to stop the product launch – alleging violation of the existing License Agreement.

The petitioners claimed, “SGX’s new derivatives contracts are identical to certain products, which were licensed under the License Agreement and proposed to be launched on the Respondent’s platform, despite the issuance of the termination notice of the License Agreement by the Petitioner”.

In its defense, Michael Syn, head of derivatives at SGX has reportedly stated that “Our new India equity derivative products are essential to enable institutional investors to maintain their current portfolio risk exposure to the Indian capital markets.”

Michael further added that, “We remain open to working with NSE and other relevant stakeholders to develop a solution that meets the risk management needs of global market participants”.

HC will hear the matter today. 

Tagged: National Stock Exchange   Bombay HC   Singapore Exchange  
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