The investigation wing of the competition watchdog, Competition Commission of India (CCI), is believed to have recommended action against the National Stock Exchange (NSE) for abusing its dominant position in the currency derivatives trade segment.
“It is concluded that NSE has abused dominant position in the relevant product (currency derivatives) market of stock exchange services by directly imposing unfair and discriminatory pricing in the sale of services including predatory pricing in the CD segment,” said a report by the director general.
After investigating a complaint by the MCX-Stock Exchange (MCX-SX), the director general has asked the Commission to “consider taking requisite remedial measures under Sections 27 and 28 of the Act” against the NSE.
Sections 27 and 28 empower CCI to issue restraint orders and to impose fines.
The report will be considered by CCI before any action is taken against NSE.
The report further said NSE used its dominant position and original monopoly in the equity, futures & options and wholesale debt markets to protect its position in the CD market.
The MCX-SX, in its representation to CCI in November 2009, had alleged that NSE had substantially reduced admission and trade-related fees to eliminate competition and discourage other entities from entering the market.
