The Monetary Authority of Singapore (MAS) has urged the SGX and the NSE to come up with an amicable solution to the ongoing dispute over Nifty-based products. The SGX earlier said it would allow trading in those products from June.

‘Disruptive’ for investors

In a statement issued on Tuesday, MAS said, “The commercial dispute between the SGX and the NSE over the former’s intent to launch new India equity derivative products is disruptive for international institutional investors in Indian equities. The range of available financial instruments for investors to hedge exposures and manage risks in Indian equities will be reduced.”

“ A prolonged dispute will impact the accessibility of the Indian equities market to international investors. MAS urges all parties concerned to work together to find an amicable solution that will continue to encourage investments in the Indian market. A speedy resolution to the dispute will be in the best interest of all parties concerned,” it added.

The NSE has filed a case in the Bombay High Court seeking interim relief on the Nifty-based products that the SGX said it will start trading from June.

In February, the NSE chose to withdraw itself from a decade-old agreement it had with the SGX allowing the trading of Nifty index futures in Singapore. Two months later, on April 11, the SGX announced a new product that works just like the Nifty index, bypassing Indian exchanges.

The SGX’s new products are called India futures and India options, and the exchange will use the closing Nifty price to settle new contracts.

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