SGX bows out of India futures launch amidst lawsuit

It will wait for the results of the lawsuit, which is headed into arbitration.

The Singapore Exchange (SGX) decided to reschedule the launch of its new India derivatives as a lawsuit initiated by the National Stock Exchange of India (NSE) is headed into arbitration.

According to an announcement, SGX was not able to contest the injunction filed by NSE subsidiary India Index Services and Products Limited (IISL) on 21 May 2018 as it was not notified by IISL of its application for the injunction.

"SGX has been engaged in proceedings in the Bombay High Court since 23 May 2018. The Court has ordered the matter to be fixed for arbitration and for a decision on the injunction to be made by 16 June 2018," the exchange said.

Due to "uncertainty caused by IISL’s action," SGX will continue the listing of its Nifty contracts until August 2018 but reschedule the launch of our new India derivatives products, pending the outcome of the arbitration.

"SGX will contest the interim injunction and reserves all rights in respect of damages caused by IISL’s action," SGX said. "IISL’s action has adversely affected international investors who rely on SGX’s platform to manage the risks of their exposures to the Indian market, and significantly diminishes access to, and interest in the capital markets in India."

Amidst the tension, SGX said it remains open to a collaborative long-term solution that will benefit Indian markets.