Arbitrator to give final ruling on SGXNSE dispute in February
MUMBAI: The final arbitration award in the dispute between National Stock Exchange of India Ltd (NSE) and Singapore Exchange Ltd (SGX) will be made in the first week of February.
In a statement, NSE said the arbitrational tribunal hearing the matter has fixed the date. SGX did not respond to a written query. NSE has locked horns with SGX over an index derivative that the latter plans to launch in Singapore, which mimics the NSE’S Nifty index.
The SGX move came after NSE terminated its licence agreement for the SGX Nifty traded in Singapore.
Justice SJ Vazifdar ruled on June 14 that the current licence agreement between NSE and SGX will continue for two months after the final arbitration award.
If the final award comes by early February, as NSE stated, foreign investors having exposure to India through existing SGX Nifty contracts will have time till the end of March either to transition to Indian exchanges or offshore exchanges in Gujarat International Finance Tech (GIFT) City.
Justice Vazifdar also ruled that during this period, SGX will not be able to launch its contested India-specific products, and for three weeks after the final arbitration award.
The two warring exchanges have been given time till 30 October to file claims, counterclaims and defences. The final hearing and framing of issues will begin on November 21.
“Looking at the complexity of the issue involved, I am of the view that the ends of justice as indeed the interest of the parties would be met by the matter being adjudicated finally and expeditiously,” said Vazifdar in the order passed on June 14.