CCI penalised NSE for abusing dominant market position: Minister
New Delhi: The government on Thursday said the Competition Commission had imposed penalty on the National Stock Exchange (NSE) for abusing its dominant market position.
"MCX Stock Exchange filed a case against National Stock Exchange and others alleging violation of provisions (abuse of dominance) of the Competition Act, 2002," Minister of State for Corporate Affairs R P N Singh said in a written reply to the Lok Sabha.
He said the Commission imposed a penalty of Rs 55.50 crore on NSE for contravention of the provisions of the Competition Act in its order dated June 23, 2011.
"On the appeal filed by NSE against this order of CCI, the Competition Appellate Tribunal (COMPAT) has stayed the recovery proceedings," Singh said.
Competition Commission of India (CCI) is the regulator for fair market practices and ensuring level-playing field.
Since CCI and COMPAT are quasi-judicial bodies, no action is required to be taken by the government, he replied when asked if any action was taken by it in this regard.
The NSE and MCX-Stock Exchange (MCX-SX) had entered into currency derivatives trading in August 2008 and October 2008 respectively, followed by United Stock Exchange (USE) in 2010.
However, in November 2009, MCX-SX filed a complaint against NSE for abusing its dominant position and thus violating the Competition Act.
After a year-long probe, CCI found NSE guilty of anti-competition practices and penalised it for abusing its dominant market position.