The arbitration proceedings, between the NSE and SGX pertaining to the launch of Nifty based derivative products by the latter, commenced yesterday..Justice S.J. Kathawalla of the Bombay High Court had through an order dated May 29 referred the matter to Justice SJ Vazifdar (retired Chief Justice of Punjab and Haryana High Court) as the sole arbitrator to hear the arguments from June 12-16. These proceedings, says the order, shall be treated as an application under Section 17 of the Arbitration and Conciliation Act, 1996..Kathawalla had also barred SGX from launching its new derivatives mirroring the NSE’s indices till the Indian bourse’s plea challenging the contracts is decided by the arbitrator..The SGX in April said that it will migrate all Nifty and Bank Nifty positions of its clients to new contracts that will be settled every month on publicly available information. These new contracts stem from the February 9 decision by the NSE, the BSE, and another bourse to halt providing data to foreign exchanges to prevent trading volumes from moving offshore..In the proceedings before the arbitrator, NSE pointed out that the new products of SGX are identical to the existing ones and based on the very same underlying..It was further argued that the existing exposure and open positions are openly being sought to be migrated to the new products showing homogeneity and that every feature of the products and the terms of the products are identical..Alleging violation of existing license agreement between, NSE pointed out that this right had been paid for, for 18 years, and now suddenly SGX says they don’t need a license..The hearing will continue on day to day basis..NSE is represented by Senior Counsel Abhishek Manu Singhvi assisted by Counsel Venkatesh Dhond and Somasekhar Sundaresan, briefed by Cyril Amarchand Mangaldas. While SGX ias represented by Senior Counsel Darius Khambata and Shiraz Rustomjee briefed by Naik and Naik.
The arbitration proceedings, between the NSE and SGX pertaining to the launch of Nifty based derivative products by the latter, commenced yesterday..Justice S.J. Kathawalla of the Bombay High Court had through an order dated May 29 referred the matter to Justice SJ Vazifdar (retired Chief Justice of Punjab and Haryana High Court) as the sole arbitrator to hear the arguments from June 12-16. These proceedings, says the order, shall be treated as an application under Section 17 of the Arbitration and Conciliation Act, 1996..Kathawalla had also barred SGX from launching its new derivatives mirroring the NSE’s indices till the Indian bourse’s plea challenging the contracts is decided by the arbitrator..The SGX in April said that it will migrate all Nifty and Bank Nifty positions of its clients to new contracts that will be settled every month on publicly available information. These new contracts stem from the February 9 decision by the NSE, the BSE, and another bourse to halt providing data to foreign exchanges to prevent trading volumes from moving offshore..In the proceedings before the arbitrator, NSE pointed out that the new products of SGX are identical to the existing ones and based on the very same underlying..It was further argued that the existing exposure and open positions are openly being sought to be migrated to the new products showing homogeneity and that every feature of the products and the terms of the products are identical..Alleging violation of existing license agreement between, NSE pointed out that this right had been paid for, for 18 years, and now suddenly SGX says they don’t need a license..The hearing will continue on day to day basis..NSE is represented by Senior Counsel Abhishek Manu Singhvi assisted by Counsel Venkatesh Dhond and Somasekhar Sundaresan, briefed by Cyril Amarchand Mangaldas. While SGX ias represented by Senior Counsel Darius Khambata and Shiraz Rustomjee briefed by Naik and Naik.
