In a significant order passed on 5th August 2014, the
Competition Appellate Tribunal (Compat) in NSE’s Appeal No. 15/2011 filed under
Section 53B of the Competition Act 2002 upheld order of May 2011 of Competition
Commission of India (CCI) which had found the National Stock Exchange (NSE)
guilty of abusing its dominant market position in currency derivatives segment
and had fined it Rs 55.5 crore (5% of the average turnover). The CCI had passed
the order on the complaint of MCX Stock Exchange (MCX-SX) which had accused NSE
of abusing its dominant market position to corner business in the CD segment.
The CCI, which is the competition watchdog, had found NSE guilty of abusing its
dominant market position and adopting unfair trade practices in currency
derivatives trading. Compat said that "NSE was making tons of profits from
the relevant market on account of its services in the other segments.
Therefore, there can be no justification for taking any lenient view." The
Tribunal, however, said there was no necessity of putting all the other
segments in one group as relevant market.
Click below to read the full text of the judgment.
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