Supreme Court stays CCI penalty on NSE
The CCI had imposed a Rs55.5 crore penalty on the bourse for using its dominant position to attract business and following unfair pricing policies
New Delhi: The Supreme Court on Tuesday stayed the deposit of a penalty of ₹ 55.5 crore imposed by the competition regulator on the National Stock Exchange (NSE) for allegedly following unfair pricing policies with regard to currency derivatives.
A bench of justices J. Chelameswar and A.K. Sikri also asked the Competition Commission of India (CCI) to respond to NSE’s appeal against the Competition Appellate Tribunal (Compat) order of 5 August upholding the CCI’s findings.
The court will hear the case on 10 November.
“The action on the part of NSE in continuing with the zero transaction fees policy, according to us is a classic example of exclusionary conduct,” the Compat order had noted. Compat also agreed with the CCI decision of June 2011 that imposed the penalty.
The appeal comes from a 2009 complaint by MCX Stock Exchange Ltd (MCX-SX) to the CCI regarding NSE’s decision to offer currency derivatives trading free of cost to investors when it launched such trading on the exchange in August 2008. MCX-SX launched the currency derivatives segment in October 2008.
In June 2011, the CCI decided that NSE was using its dominant position to attract business and following unfair pricing policies, negatively affecting competition in the market.
While directing NSE to levy charges in its currency derivatives segment, the CCI also imposed a penalty of ₹ 55.5 crore. The deadline for paying the penalty was to be 24 September.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High