The Bombay High Court will hear the appeal filed by the National Stock Exchange against Singapore Exchange (SGX) on Saturday after both the parties failed to agree on the appointment of an arbitrator as suggested by the court.
NSE has filed an arbitration petition against SGX over the latter’s plans to unveil derivative products based on Indian stocks and indices.
On Wednesday, Justice S.J. Kathawalla extended the injunction against the rolling out of the derivatives products by SGX scheduled on June 4.
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This was after the arguments presented by both the parties during which they could not agree on the terms of arbitration.
While SGX wanted a sole arbitrator for the matter, NSE suggested a panel of three. Also, they could not agree on the mandate for the arbitration procedure.
In April, SGX announced the launch of three derivative products based on the Indian market. Soon after SGX made its announcement , NSE responded by saying that it was examining the SGX announcement and had also sought more details regarding the proposed products from the foreign bourse.
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In February, the three Indian bourses, BSE, NSE and the Metropolitan Stock Exchange issued a joint statement saying that they would not share market data feed with any foreign bourse where derivative contracts based on Indian indices are offered.