CCI asks NSE to pay Rs 55.5 cr penalty, stop unfair pricing

Pronouncing NSE guilty of abusing dominant market position, the Competition Commission has asked the bourse to pay a penalty of Rs 55.5 crore within 30 days and also immediately stop subsidising its services.

In its order, passed last evening and dispatched today, the competition watchdog said that 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 55.5 crore, which is 5% of the bourse's three-year average turnover, the order said.

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, 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.

The exchange 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, which had accused NSE of abusing its dominant market position to corner business in CD segment.