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The Competition Appellate Tribunal on Thursday granted a stay on the Rs 55.5-crore penalty imposed on the National Stock Exchange by the Competition Commission of India.
The CCI, in June, had pronounced NSE guilty of abusing market dominance in currency futures segment, and had slapped a fine on the bourse.
But NSE, last month, moved the competition appellate tribunal challenging the CCI order and terming it “antithetical.”
On Thursday, a three-member bench – headed by the COMPAT Chairman, Dr Justice Arijit Pasayat – directed a stay on “realisation of the penalty till disposal of the present appeal subject to the appellant filing an undertaking to pay interest at nine per cent of the amount or any reduced amount on the basis of decision in the present appeal.” The tribunal directed the NSE to file the undertaking to this effect within two weeks.
The next date of hearing will be notified after 10 weeks.
Meanwhile, CCI and MCX-SX have been given six weeks to file their reply, after which NSE has four weeks to file its rejoinder.
COMPAT has also asked the NSE to file an undertaking with regard to compliance with the CCI's June order, in which the competition watchdog had asked the bourse to cease and desist from unfair pricing, exclusionary conduct and unfairly using its dominant position in other markets to protect the relevant currency derivatives market.
Secondly, the CCI order had also directed NSE to modify its zero price policy in the relevant market and ensure that appropriate transaction costs are levied. NSE was also asked to put in place a system that would allow NSE members free choice to select NOW, ODIN or any other market watch software for trading on the currency derivatives segment. The NSE has already started imposing a charge in the currency derivatives segment and has also agreed to settle a trading software dispute with the MCX-SX group.
Lastly, NSE had been directed by the CCI to maintain separate accounts for each segment (of trading), but the bourse has time till April 1, 2012 to do this.
It is pertinent to mention here that NSE, last month, sought an interim relief from the COMPAT on three counts – payment of penalty, the requirement to maintain segmental accounts and any compensation claims that may be filed by MCX-SX or any other third parties. The stay granted by COMPAT on Thursday is on the penalty of Rs 55.5 crore.
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