The Bombay High Court deferred until Thursday the hearing on a dispute between the National Stock Exchange (NSE) and the Singapore Exchange (SGX) over the latter's plan to launch Nifty-based products beginning this June.
Justice S J Kathawala had passed an interim order restraining the SGX from launching these new derivative contracts until further notice.
As the NSE has sought relief under the Arbitration and Conciliation Act, the judge on Wednesday expressed his wish to send the parties to a court-appointed arbitrator to resolve the dispute.
But lawyers for the SGX sought time to take instructions on the issue of refraining from acting upon its April 11 circular - which announced launch of new derivative products in June - until the dispute was resolved by the arbitrator.
The judge is expected to pass order - to send the matter for arbitration or decide it himself on merits -tomorrow after the SGX lawyers make their stand clear.The NSE had approached the Bombay High Court through senior lawyer Abhishek Manu Singhvi.
Arguing that it had an intellectual property right over the Nifty benchmark, NSE sought that the SGX be restrained from going ahead with the launch starting June 4.
In February, the three Indian stock exchanges -Bombay Stock Exchange, NSE and Metropolitan Stock Exchange-had taken a decision to stop trading of derivative contracts based on Indian indices on overseas bourses.
However, on April 11, the SGX announced new India equity derivative products that will be based on settlement prices of Nifty futures contracts.
Derivatives are contracts between two or more parties whose value or prices are determined by the fluctuations of the underlying financial assets such as securities, bonds, currencies, stocks, or market indexes.NSE said in a statement, "On May 21, 2018, NSE's Index company filed a petition before the Hon'ble Bombay High Court against the Singapore Exchange Limited (SGX) under Section 9 of the Arbitration Act seeking urgent interim reliefs against the marketing, promotion and launch of three new contracts called SGX India Futures, SGX Options on SGX India Futures and SGX India Bank Futures, in terms of its circular dated April 11 2018.""The matter was heard by the Hon'ble Court and has been kept for further detailed arguments on May 26, Saturday.
Until then, the ad-interim injunction granted on May 21, 2018 continues against the launch of new derivative contracts by SGX, in terms of their above-mentioned circular," the statement further read.(This story has not been edited by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)