The National Stock Exchange or NSE on Monday filed a writ petition in Delhi High Court challenging a penalty notice by the Competition Comission of India or CCI and asked that the competition regulator provide more details and reason why it imposed a penalty, according to a person close to the move who did not wish to be identified.
According to this person NSE has also asked for more time to reply to CCI.
The CCI had issued a notice to NSE last week asking why a penalty should not be imposed on it for alleged abuse of its dominant position in the stock exchange arena.
NSE has also contended that the notice did not give reasons as to how did CCI reach the conclusion of slapping the penalty.
An NSE spokesperson said: “We cannot comment now as the matter is ongoing and subjudice.”
Another person in the know of things said: ”Yes, NSE has moved Delhi High Court. The case will be heard on Wednesday.” He did not wish to be identified. He added CCI has charged NSE for abuse of its dominant position in currency derivative market.
CCI’s inquiry is based on a charge made by NSE’s rival MCX-SX. It alleged that NSE substantially reduced admission and trade related fees to eliminate competition and discourage other entities from entering the market.
Last week CCI asked NSE as to why a penalty should not be imposed on it for unfair trade practices in connection with currency derivatives trading.
In December, CCI’s investigation wing recommended action against NSE saying that it used its dominant position and original monopoly in equity, F&O (Future and Options) and WDM (Wholesale Debt Market) markets to protect its position in the currency derivative (CD) market.
Currency futures trading started on the NSE on 29 August, 2008, and at the MCX-SX on 7 October, 2008.
While MCX-SX is allowed to trade only in currency derivatives, NSE has presence in all major financial trading segment.