NSE moves Compat against CCI order

Business

oi-Shoaib MD

By Shoaib Md

Published: Saturday, August 20, 2011, 13:57 [IST]

National Stock Exchange knocked the doors of Competition Appellate Tribunal (Compat) against the Competition Commission of India's (CCI) order that pronounced it guilty of abusing market dominance and imposed a Rs 55.5 crore fine on the the bourse.

The National Stock Exchange (NSE) in its appeal before Compat has asserted that the Competition Act did not envisage low price, which is not predatory, as an abuse of dominance reported PTI.

There are also reports that NSE has said to tribunal that the order from CCI was contradictory to the tenets of Competition Act, which is to protect and promote consumer welfare.

CCI in its order on June 23 had imposed Rs 55.5 crore fine on NSE for abusing its dominant market position. The CCI had also asked the bourse to stop unfair trade practices like subsidising its services with a zero-price regime in currency derivatives segment.

The penalty amount was equivalent to 5% of the bourse's three-year average turnover. The competition watchdog said that there was "a clear intention on the part of NSE to eliminate competitors in the relevant market".

The CCI order followed months-long probe by it into the matter after a complaint from NSE's younger rival MCX-SX.

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