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The National Stock Exchange will move the Supreme Court against the Competition Appellate Tribunal (COMPAT) order upholding the Competition Commission of India (CCI) view that the country’s largest bourse had abused its dominant position to corner business in the currency derivatives market. In a majority ruling in May 2011, the competition watchdog had concluded that the NSE had resorted to an “unfair” trade practice in adopting a zero-pricing model in its currency derivatives segment.
The CCI majority order had also found that the bourse had abused its dominant position. The final CCI order was passed in June 2011 and the penalty was quantified at ₹55.5 crore. COMPAT’s ruling, dismissing the NSE plea against the CCI order, would mean that the bourse would have to fork out a penalty of ₹55.5 crore. But this may not arise if NSE decides to appeal against the COMPAT order before the apex court.
“NSE will appeal the order of COMPAT and we will do the needful after going through the detailed order. Whatever we have done was in the interest of the development of the capital markets. A suitable review of the implications will be done in due course,” an NSE spokesperson said.
MCX-SX had filed a complaint before the CCI alleging that NSE was pricing its services in the currency derivatives market below cost and abusing its dominant market position.
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