New Delhi: The National Stock Exchange and the Singapore Exchange on Wednesday said they had resumed discussions on a potential collaboration in Gujarat’s international financial services centre and ongoing arbitration proceedings had been deferred pending outcome of the talks.

The two parties will jointly engage and consult relevant stakeholders on the proposed collaboration in Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC).

Market participants believe that the discussions could be related to raising liquidity from offshore markets to GIFT City.

“SGX and NSE have resumed discussions on a potential collaboration in GIFT IFSC," the Indian bourse said in a statement.

Since February, NSE and SGX have been locked in a tussle after the domestic bourse and others decided to stop licensing their indices to foreign exchanges from August. Later in April, SGX announced listing of new Indian equity derivative products from June.

Amid concerns over liquidity migrating overseas, 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.

“The injunction against the new products..., first imposed by the Bombay High Court, has been extended and continues until completion of the arbitration proceedings," NSE had said on June 16.

The injunction from the Bombay High Court was against three products that SGX proposed to launch in June: 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, NSE had said.

In Wednesday’s statements, the bourses said pending the outcome of the discussions, the arbitrator had granted a deferment of proceedings between SGX and IISL. The directions under the arbitration order remain effective.

Prior to the tussle, both exchanges were in discussions for potential collaboration in GIFT IFSC.

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