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Concerned over Singapore Stock Exchange’s plan to launch single future stocks of Nifty 50 companies, NSE chief Vikram Limaye on Monday said the move will shift liquidity out of Indian markets.
The NSE said it will consider all options to consolidate liquidity.
“There is a concern surrounding liquidity of the Indian markets being fragmented and moving offshore,” Limaye said.
He said NSE is focussed on what is in the best interests of the Indian markets and in that context all options will be considered to consolidate liquidity.
The reaction comes after SGX announced its plan to launch trading in single-stock futures in Nifty 50 companies from next month.
NSE is believed to have asked SGX to delay the launch as the move might take away volumes from the domestic bourse.
SGX and NSE have a licensing agreement that allows futures and options based on the Nifty 50 index to trade in Singapore. However, existing products track indices and sectors and not individual shares.
“We are in discussions with SEBI and government and have also sounded SGX of the concerns. We will evaluate all options and take appropriate decision,” Limaye said.
“We are also working with the regulators and government to make our markets more attractive and competitive compared to foreign jurisdictions,” he added.
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