Analysts said the move would especially affect SGX's Nifty 50 index futures, which is the Singapore Exchange's flagship Indian equity derivatives product and accounts for about 12 per cent of its total derivatives trading volume.
"While near-term financial impact is muted, earnings may be negatively impacted by mid to high single digit in absence of complementary access products for the Indian market," Jefferies analyst Krishna Guha said in a report on Monday.
Jefferies is still maintaining its buy rating on the exchange "while we wait for launch and more information on such products," Guha added.
SGX shares tumbled to their lowest since January 2017 and suffered their biggest percentage drop in more than nine years.
The Nifty fifty index futures tracks the National Stock Exchange's main index and is used by global market participants to gain offshore exposure and track Indian equity markets.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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