Indian stock exchanges on Friday said they will immediately stop the trading of their indices and securities data on foreign exchanges as part of a joint effort to prevent migration of their liquidity to overseas markets.

The decision of the three exchanges viz., Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSEI) came after Securities and Exchange Board of India (SEBI) asked them to suspend trading of their indices in international markets, officials in the know 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 markets," their joint official statement said.