SGX
had said it would delist all the NSE-licensed contracts and launch trading in new India products, including SGX
India futures, SGX
India options and SGX
India Bank.
Legal experts said SGX’s move did not infringe any rules as these products do not track any benchmark index that is intellectual property of domestic exchanges.
Further, the contracts won’t track the original price movement on the
NSE as the settlement price for these will be the average of the final settlement prices of futures contracts traded on the
NSE.
“Legal action looks difficult as settlement data is publicly available on the exchange website.
However, since the SGX India contracts will not be tracking the price movement of the underlying security on a real-time basis, these contracts might not become as popular as SGX Nifty,” said Sandeep Parekh, founder, Finsec Law Advisors.
"SGX will launch three derivative products in June: SGX India futures; SGX India options; and SGX India bank futures.
For 29 out of 30 days, these contracts won’t be anchored by any underlying security or index; they will be whatever their buyers and sellers want them to be. However,
ONLY on the last Thursday of the month, they will get settled according to the average of publicly available expiry prices of futures and options on Nifty 50 (and Bank Nifty) benchmarks on the National Stock Exchange in Mumbai."
Obviously, the chance of popularity of such products is very less comparing to SGX
Nifty.