The Delhi High Court has directed the Competition Commission of India (CCI) to issue a detailed final order to the National Stock Exchange (NSE), with regard to predatory pricing in the currency futures segment, within a weeks time.
Justice S Muralidhar said, “CCI has to furnish the petitioner any order forming the basis of penalty show cause notice. On principle of natural justice CCI is directed to furnish a copy of order dated April 29 within one week.”
Challenging a penalty notice from CCI, NSE had approached the high court with a petition that the competition watchdog be directed to provide full details and reasons behind its move.
The exchange had also sought more time to reply to the show-cause notice of CCI, asking why a penalty should not be imposed on it for alleged abuse of its dominant position in the stock exchange arena. The NSE had contended that the notice did not give reasons as to how did CCI reach the conclusion of slapping the penalty.
The CCI notice followed its internal investigations after complaints filed by NSE’s rival in currency derivative market, MCX-SX. It alleged that NSE substantially reduced admission and trade related fees to eliminate competition and discourage other entities from entering the market. The probe found that NSE allegedly violated Section 4 of the Competition Act, which relates to abuse of dominant market position.