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The Supreme Court on Tuesday stayed the order of fair-trade regulator Competition Commission of India (CCI) directing the National Stock Exchange (NSE) to pay a penalty of Rs 55 crore for the alleged abuse of its dominant position and unfair practices.
The appellate tribunal had upheld the Commission's order. NSE appealed to the Supreme Court and a Bench headed by Justice J Chelameswar has issued a notice to the Commission.
The tribunal had dismissed NSE's appeal observing its action in continuing with a zero transaction fee policy was a "classic example of exclusionary conduct."
The case traces back to 2009 when MCX Stock Exchange moved the CCI against NSE's decision to offer currency derivatives trading free of cost to investors. It argued that NSE enjoyed a dominant position, which was abused. The tribunal had stated: "It is absolutely clear that while NSE could continue because of its relative strength in other segments, MCX could not have continued with the policy and necessarily it had to adopt the same policy of no transaction fees, as otherwise it could not have even entered the market, forget about its sustenance in the market."
