Court extends stay in India-Singapore dispute over stock futures

(May 24): The Bombay High Court extended an injunction against Singapore Exchange (SGX) as it deferred hearing a dispute over plans for new offshore Indian derivatives contracts.

National Stock Exchange of India obtained an interim order on May 21 that restrains SGX from launching the products in June. The stay will remain until at least the next hearing in the case between the bourses, set for May 26, the NSE said in a statement late Wednesday. SGX officials declined to comment.

NSE went to court to stop its counterpart from starting contracts that would replace its popular Nifty 50 Index derivatives. The Nifty futures in Singapore will end in the coming weeks after Indian bourses in February cancelled their licensing and data deals with overseas markets, a decision that drew consternation from international investors and left SGX and others scrambling to find alternatives. The contracts have become a favoured offshore product for hedging Indian holdings.

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