The restraint would be till three weeks after the arbitration process is completed even as the tribunal allowed continuation of existing SGX-Nifty contracts.
An arbitral tribunal has restrained the Singapore Exchange (SGX) from launching any new derivative products linked to the National Stock Exchange (NSE)'s indices.
The restraint would be till three weeks after the arbitration process is completed even as the tribunal allowed continuation of existing SGX-Nifty contracts.
Differences between the two bourses emerged after SGX, in April, announced listing of new Indian equity derivative products from this month.
Amid concerns over liquidity migrating overseas, the NSE's index company IISL had moved the Bombay High Court, which restrained SGX from launching the new products and referred the matter for arbitration.
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Against this backdrop, the arbitral tribunal has called for interim arrangements in the dispute through an order passed on June 14.
"The injunction against the new products..., first imposed by the Bombay High Court, has been extended and continues until completion of the arbitration proceedings," the NSE said in a statement today.
The injunction from the Bombay High Court was against three products that SGX proposed to launch this month. They were SGX India Futures, SGX Options on SGX India Futures and SGX India bank futures.
The existing licence for the SGX Nifty contracts stands extended for two successive contract months beyond the arbitration award date, the NSE said.
In a separate statement, the SGX said the arbitration proceedings are continuing and the hearings on evidence are expected to commence in early 2019.
SGX also said that it has been granted a licence extension to continue the listing and trading of SGX Nifty contracts beyond August 2018.
"During the pendency of these proceedings and for a period of three weeks after the date of declaration of the final arbitration award, SGX has been restrained from launching or listing any new derivative products linked to IISL Indices or NSE and NSE IFSC equity derivative products," the NSE said.
The arbitration proceedings are going on before Justice Vazifdar, former Chief Justice of the Punjab and Haryana High Court.
As per the tribunal, the court's injunction granted on May 29 would continue "to operate for a period of four weeks from the date of the declaration of the final award".
The dispute pertains to SGX's proposal to introduce SGX India contracts linked to the NSE's Nifty Futures on Nifty indices.
Both exchanges said that they would provide updates to the market in due course.
The arbitration is between India Index Services and Products Ltd and Singapore Exchange Derivatives Trading Ltd and others.