Reuters: "Indian bourses to stop licensing index, stock prices to foreign exchanges"

[HobbyTrading]

https://www.reuters.com/article/ind...ock-prices-to-foreign-exchanges-idUSL4N1PZ4UY
Partial quote from the article:

* Indian exchanges to stop licensing deals with overseas bourses
* Will stop providing data, terminate current contracts
* Singapore is popular offshore market for Indian derivatives
* Whether foreign investors will now come to India uncertain

MUMBAI, Feb 9 (Reuters) - India’s three main stocks exchanges said on Friday they would stop licensing their indexes and securities or providing data to foreign exchanges, saying such agreements had led trading to migrate outside of the country.

Foreign markets now offer dollar-based derivative contracts based on Indian indexes, shares and other securities under licensing agreements with Indian exchanges, allowing overseas investors to gain exposure to Asia’s third-largest economy without having to trade onshore.

Those licensing agreements will now be terminated with immediate effect, subject to notice periods, the National Stock Exchange, BSE Ltd and Metropolitan Stock Exchange said in a joint statement late on Friday.

The most popular of these contracts has long been the SGX Nifty 50 index futures offered by the Singapore Exchange under a licensing agreement with the National Stock Exchange, India’s biggest exchange. It tracks the NSE’s main index of its top 50 shares, the Nifty 50 index.

Response from the Singapore Exchange (SGX):
http://www.sgx.com/wps/wcm/connect/.../Announcement_on_SGX_India_Equity_Derivatives
Partial quote:

We refer to the issuance of the “Joint Press Release for Licensing of Indian Indices and Market Data of the securities listed or traded in India” by National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI) (“the Indian Exchanges”) on 9 February 2018, regarding the commercial licensing of their indices and market data with a number of foreign exchanges and other business partners.

SGX wishes to assure market participants that we will take all measures to maintain orderly trading and clearing of SGX India equity derivatives for our global clients. The market for our entire India suite of products including Nifty will open and operate per normal on Monday, 12 February 2018. Our licence agreement with NSE will ensure the continuity of listing and trading our Nifty suite of derivative products till August 2018 at a minimum.

Although I am posting this in the index futures section, this decision might also influence other products, such as ETFs which are issued and traded outside India.
Anyone who is trading a product which is based on the NIFTY index should investigate whether the product will continue to exist, or whether it will be discontinued.

 

[MoreLeverage]

That seems really dumb. Are they going to keep their stock prices secret to all foreigners? Seems impossible in this Internet age. Plus a foreign country is running the futures exchange so what are you going to do if they just keep using their own Pretty Nifty index that uses the same top 50 stocks? Sue them in their own courts, good luck with that.

 

[Obelixtrader]

If they planned something like this, they should first remove the restrictions so that non-indian residents can trade on their exchanges stocks and futures and than cancel their stupid stamp duty tax and STT (securities transaction tax) for futures and stocks if they wanna more liquidity on their echanges and more revenue.Probably the high temperatures in India had their brain baked or they smoke to much marijuana

 

[HobbyTrading]

The saga continues:
https://in.reuters.com/article/sgx-...-of-indian-derivatives-products-idINKCN1IU1OL
Partial quote from the article:

MUMBAI (Reuters) - The Singapore Exchange (SGX) has postponed the launch of a set of India derivatives products after an Indian court on Tuesday referred a dispute around the proposed offerings to an arbitrator.
“We will reschedule the launch of our new India derivatives products, pending the outcome of the arbitration,” SGX said in a statement.
SGX has been locked in a dispute with India’s National Stock Exchange (NSE) after the country’s three main bourses unexpectedly announced in February they would stop licensing their indexes to foreign bourses from August.
In response, SGX said it would launch successor products to its flagship Indian equity derivative products on June 4.
The NSE, however, sought an interim injunction against the launch, saying the proposed products infringed the intellectual property rights of India Index Services and Products (IISL), its unit that runs the Nifty index.
The Bombay High Court on Tuesday referred the matter for arbitration to a senior retired judge, who it said would attempt to resolve the issue by June 16. Until then, the court barred SGX from launching the proposed products.
“SGX will contest the interim injunction and reserves all rights in respect of damages caused by IISL’s action,” the SGX said.
In the meanwhile, SGX said it will continue listing SGX Nifty contracts until August.