Bombay HC extends NSE-SGX arbitration deadline to Dec 2020
The Bombay High Court (HC) has extended the arbitration deadline till December 31, 2020, for settling the dispute between the National Stock Exchange (NSE) and the Singapore Exchange (SGX) over the trading of Nifty products. In the interim, Nifty derivatives will be allowed to be traded on the SGX.
Both the exchanges are engaged in arbitration proceedings under the Arbitration and Conciliation Act.
The dispute was triggered after the NSE decided to terminate the Nifty trading pact with the SGX in February 2018. Also, the Singapore bourse's subsequent decision to launch identical India products became a bone of contention.
Both the NSE and the SGX pleaded before the Bombay HC that more time should be granted to the arbitrator to decide the disputes between them and pass an order. Justice S J Vazifdar is appointed as arbitrator in the matter.
“By consent of the parties, the above arbitration petition is allowed in terms of prayer clause (a) and time to decide the disputes and pass the award is extended up to December 31, 2020. The above Arbitration Petition is accordingly disposed of,” said Justice SJ Kathawalla in an order dated March 13.
The NSE and The SGX are working on a solution to route SGX Nifty trading volumes through GIFT City in Gujarat, Feb 9: Indian bourses end data sharing tie-ups with their foreign counterparts April 11: SGX announces new India products; says will migrate client positions to new products in June
May 21: NSE moves Bombay HC to stop SGX from launching new
said people having the knowledge of the development.
GIFT City, or Gujarat International Finance Tec-City, is India’s only International Financial Services Centre (IFSC). It provides benefits such as exemption from capital gains, securities transaction tax (STT) and stamp duty on trades coming from GIFT. “As soon as there is a solution acceptable to all the parties, the NSE and the SGX will approach the arbitrator, who will then grant the India products
May 22: The court grants an interim injunction against the launch of new India products
June 18: The arbitrator directs NSE to extend pact on Nifty contracts until the final arbitration award
July 25: Arbitration proceedings deferred March 13: HC grants the arbitrator time till December 31, 2020, to pass the final order
final arbitration award,” said a source.
In February, 1.6 million contracts of the SGX Nifty 50 Index were traded in the futures market on the SGX. SGX Nifty futures volumes are down 27 per cent since February 2018, when Indian bourses first announced their plan to end data sharing and licensing pact with their global counterparts. The move was aimed at curbing overseas trading of Indian securities.