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Indian stock exchanges assure global bourses over orderly transition

NEW DELHI: Indian stock exchanges today assured internationa..

NEW DELHI: Indian stock exchanges today assured international bourses and index providers of orderly transition, saying steps would be taken to ensure that ending licensing pacts do not disrupt the markets.

In a joint statement, BSE, NSE and Metropolitan Stock Exchange of India said that they will continue to work with the regulators to further enhance the attractiveness and competitiveness of the Indian markets for accessing and trading India related products.

The announcement comes more than a week after these bourses decided to curb all licensing agreements and stop offering live prices to international exchanges.

The coordinated move from the exchanges assumed significance at a time when Singapore Stock Exchange (SGX) has launched trading in single-stock futures in 50 of India's top companies that are part of the Nifty index – a development that has triggered concerns about liquidity moving out of the country.

Assuring all the stakeholders, the Indian exchanges said they will work with them "to facilitate an orderly transition that is not disruptive to the markets and stakeholders".

"This engagement with various stakeholders will continue in the coming weeks to address any concerns," they added.

The exchanges said that there have been discussions, meetings with several bourses, data vendors, index providers, market participants and investors to provide clarifications related to the announcement of ending licensing agreements.

Last week, global index provider MSCI had termed the move by Indian stock exchanges to restrict derivatives trading and data feeds overseas as anti-competitive.

Earlier, Sebi chairman Ajay Tyagi said that the move by exchanges should not be seen as a "retrograde step".

On February 5, SGX introduced single-stock futures of Nifty 50 companies despite reservations expressed by the NSE.

Prior to the launch by the Singapore exchange, NSE chief Vikram Limaye had flagged such a move would shift liquidity out of the Indian markets.

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