Indian stock exchanges, in a joint statement on 9 February, decided to cancel licensing agreements for providing indices and securities-related data feed services to foreign exchanges and trading platforms. While SGX is considering new product offerings to skirt the restrictions, Indian exchanges are trying to plug loopholes to prevent export of liquidity that could allow foreign exchanges to become price setters for Indian securities. These steps include barring third-party data vendors such as Bloomberg or Reuters from providing data from Indian exchanges for trading on overseas platforms. According to Sandeep Parekh, managing partner at Finsec Law Advisors, Indian stock exchanges have two revenue streams from foreign exchanges. The restrictions on overseas exchanges may be difficult to implement, said a market participant, requesting anonymity.

Source: Mint February 11, 2018 18:22 UTC