The Singapore bourse’s stock tumbled on news of the lawsuit, falling the most since April 4

The National Stock Exchange of India Ltd. sued Singapore Exchange Ltd. in a Mumbai court, escalating a dispute that threatens to leave international investors without one of the world’s most widely-used offshore futures contracts.

NSE is trying to stop its Singapore counterpart from launching derivatives that could replace the Nifty 50 contracts that have traded in the city-state for 18 years and are used to hedge positions that foreigners take in one of Asia’s biggest equity markets. Indian exchanges ended agreements that allowed offshore derivatives in February, leaving SGX and others scrambling.

“SGX has been notified by NSE of an application made in the Bombay High Court for an interim injunction on our new products,” SGX said in a statement Tuesday. “We have full confidence in our legal position and will vigorously defend this action.”

The Singapore bourse’s stock tumbled on news of the lawsuit, falling the most since April 4.

Vikram Limaye, NSE chief executive officer, declined to comment on the matter when reached by phone Tuesday. His exchange’s move is another ratcheting up of tensions between bourses in India and Singapore amid efforts by the former to keep trading onshore.

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