Shares of Singapore Exchange (SGX) fell nearly 7% on Monday, the first trading day after Indian exchanges said they will not share market data with any foreign bourse that offers derivatives contracts on Indian indices.
At 10:30am IST, the shares were trading at 7.38 Singapore dollars (SGD), down 6.46%. It earlier touched a low of 7.20 SGD, which was 8.75% lower than Friday's close of 7.89 SGD.
SGX offers the hugely popular Nifty contracts that attract many global investors due to its low trading costs and also the attractive tax regime of the country.
Meanwhile, SGX plans to introduce new India-specific products for global investors after a joint initiative by the three Indian stock exchanges last week will lead to the termination of the hugely popular SGX Nifty contracts.
"SGX will develop and launch new India-access risk management solutions to allow global participants in SGX India equity index family of derivative products, to execute their investment activities with continuity," said a statement by SGX adding that it will announce the details shortly.
On February 9th, the three Indian bourses, BSE, National Stock Exchange (NSE) and Metropolitan Stock Exchange (MSE) 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.
SGX said that it will take all measures to maintain orderly trading and clearing of SGX India equity derivatives for its global client's and that its licence agreement with NSE will ensure the continuity of listing and trading of the Nifty derivative products at least till August 2018.
Interestingly, SGX also added that it will jointly work with NSE’s International Exchange (NSE IFSC) in Gujarat's Gift city – India's first International Financial Services Centre (IFSC) for products for global investors.
The termination of this licence is not expected to have any material impact on SGX’s immediate financial results, said the statement.
