New Delhi : The Competition Appellate Tribunal upheld an order passed against National Stock Exchange by fair trade regulator CCI, which had found the bourse guilty of absuing its dominant market position in currency derivatives segment.
Reacting to the order, passed after a nearly 3-year-long hearings on NSE’s appeal, the exchange said that it would appeal against the decision and “whatever it has done was in the interest of the development of the capital markets”.
In May 2011, the competition watchdog had found NSE guilty of abusing its dominant market position and adopting unfair trade practices in currency derivatives trading. A month later, CCI also imposed a fine of Rs 55.5 crore on the country’s leading bourse for abusing its dominant market position, and asked it to stop unfair trade practices. At that time, it was the CCI’s first major penalty against anti-competition practices.
Subsequently, NSE challenged CCI order before the Competition Appellate Tribunal (Compat), which granted a stay in September 2011. However, the Tribunal has now decided to uphold the CCI order.
In a statement, the exchange said: “NSE will appeal the order of Compat and we will do the needful after going through teh detailed order. Whatever we have done was in the interest of the development of capital markets.
“A suitable review of the implications will be done in due course.”
Pronouncing NSE guilty of abusing its dominant market position in a 170-page order in June 2011, the CCI had also asked the country’s largest stock exchange to immediately stop subsidising its services.
MCX Stock Exchange had accused NSE of abusing its dominant market position to corner business in the CD segment.