Engaged in a tussle since February, the National Stock Exchange (NSE) and Singapore bourse SGX appear to have patched up after intervention by market regulator SEBI.
The exchanges on Wednesday issued a joint statement saying they will collaborate on Gujarat International Finance Tec-City (GIFT City), and that the ongoing arbitration proceedings have been deferred pending outcome of the talks.
Regulators hold talks
SEBI in a statement on its website said it held discussions with the Monetary Authority of Singapore (MAS) on various issues. “SEBI and MAS held discussions on various issues of cooperation, including the amicable resolution of the NSE and SGX issue.
“Both regulators agreed that the collaboration between the two authorities would be further strengthened so as to derive benefits for capital markets of both the countries.
“Both regulators also agreed that NSE and SGX would carry out necessary discussions to come up with a solution that is acceptable to both the parties,” it said.
In February, NSE said it would stop licensing its indexes to foreign bourses from August. The issue reached the Bombay High Court, which directed it to arbitration.
Responding to NSE, SGX said it would launch successor products to its flagship Indian equity derivative products from June.
SGX and NSE said in their statement today the arbitrator had granted a deferment of proceedings pending the outcome of the discussion on collaboration at GIFT City.
Discussions resumed
“SGX and NSE have resumed discussions on a potential collaboration in GIFT IFSC,” NSE said. GIFT City is being promoted as an alternative to financial centres in Singapore and Dubai.