The SGX move comes after Indian exchanges in February moved to restrict outflows of liquidity from their own markets, creating a need for foreign clients to retain some form of exposure.

Singapore’s stock market is to list new Indian equity derivative products in June, two months after India’s national stock exchanges announced they will stop licensing indices to foreign bourses.

SGX said it will list the products to “provide market participants with continuity and the ability to seamlessly transition their current India risk management exposures”. 

The products add to the current India Single Stock Futures offering, SGX said in a statement this week. The Singapore exchange said it is examining a joint trading and clearing model in Gujarat International Finance Tech city that links the National Stock Exchange of India and SGX.

“While implementation is not feasible before expiry of the licence agreement with NSE, SGX remains committed to engagements with NSE and other relevant stakeholders in India towards a collaboration in GIFT city,” the exchange said.

On 9 February, NSE, Bombay Stock Exchange and Metropolitan Stock Exchange of India issued a joint statement notifying overseas exchanges that they will no longer licence Indian indices or provide data, including the price, on Indian securities. The statement said: “It is observed that for various reasons the volumes in derivative trading based on Indian securities including indices have reached large proportions in some of the foreign jurisdictions, resulting in migration of liquidity from India, which is not in the best interest of Indian market.”