CCI slams NSE with Rs 55.5 crore fine

Business

oi-Shoaib MD

By Shoaib Md

Published: Friday, June 24, 2011, 17:01 [IST]

The Competition Commission of India (CCI) gave its verdict on the National Stock Exchange (NSE), it has asked the bourse to pay a penalty of Rs 55.5 crore within 30 days. The CCI also directed NSE to stop subsidizing its services.

The competition watchdog said, "a clear intention on the part of NSE to eliminate competitors in the relevant market."

To this extent the CCI penalised the bourse for Rs 55.5 crore, which stands to approximately 5% of the bourse's three-year average turnover.

Also the NSE has been directed to "cease and desist from unfair pricing, exclusionary conduct and unfairly using its dominant position in other markets to protect the relevant currency derivative (CD) market with immediate effect."

The CCI order of 170-pages also asks NSE to maintain separate accounts for each segment with effect from April 1, 2012. The bourse should also modify its zero price policy in the CD market and levy appropriate transaction costs within 60 days.

The exchange has also been asked to provide its brokers free choice to select the trading software systems for the CD segment, under the overall supervision of market regulator Sebi.

The hearing by the CCI had started after MCX-SX, a rical, accused NSE of abusing its dominant market position to corner business in CD segment.

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