NSE asked to pay Rs.55.50 crore penalty

Pronouncing the National Stock Exchange (NSE) guilty of abusing the dominant market position, the Competition Commission of India (CCI) has asked the bourse to pay a penalty of Rs.55.500000000 within 30 days and also immediately stop subsidising its services. In its order, passed on Thursday and despatched on Friday, the competition watchdog said there was “a clear intention on the part of NSE to eliminate competitors in the relevant market.” Accordingly, the CCI has imposed a penalty of Rs.55.500000000, which is 5% of the bourse's three-year average turnover. In addition, 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 CD (currency derivative) market with immediate effect.” In its 170-page order, the CCI also asked NSE to maintain separate accounts for each segment with effect from April 1, 2012, and modify its zero price policy in the CD market and levy appropriate transaction costs within 60 days. It 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 CCI order follows a complaint filed by its rival MCX-SX. NSE to seek legal advice Meanwhile, NSE on Friday today said it would decide its future course of action on being penalised Rs.55.500000000 by the CCI for abusing its dominant market position, after studying the legal aspects. — PTI