Concerned over Singapore Stock Exchange’s (SGX) plan to launch single-stock futures of Nifty 50 companies, NSE chief Vikram Limaye today said the move will shift liquidity out of Indian markets.
The National Stock Exchange said it will consider all options to consolidate the liquidity. “There is a concern surrounding liquidity of Indian markets being fragmented and moving offshore,” Limaye said.
He said NSE is focused on what is in the best interests of the Indian markets and in that context all options will be considered to consolidate liquidity in India.
The reaction comes after SGX announced its plan to launch trading in single-stock futures in 50 of the country’s top companies that are part of the Nifty index 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 as compared to foreign jurisdictions,” he added.