NCLAT to hear Rs 856 Cr claim against NSE for predatory pricing
Published: Sep 27, 2017
By TIOLCORP News Service
NEW DELHI, SEPT 27, 2017: National Company Law Appellate Tribunal (NCLAT) will take up hearing of compensation claim of Metropolitan Stock Exchange of India Limited (MSE) against National Stock Exchange of India Limited (NSE) relating to the predatory pricing policy adopted by NSE and the misuse of its dominant position in the industry, on October 10, 2017.
In 2008, both MSE and NSE launched currency future contracts in Indian markets almost simultaneously. NSE priced the transaction charges on these contracts at zero and given NSE's dominant position, MSE was left with no choice but to adopt zero pricing as well. This made a significant and material dent on the financial position of the new Exchange. MSE filed a complaint with the Competition Commission of India (CCI) alleging predatory pricing (waiver of transaction fees, data-feed fees and admission fees etc. by NSE) wherein CCI found NSE guilty and imposed a fine of Rs. 55.5 crore. NSE filed an appeal to Competition Appellate Tribunal (COMPAT) which too found NSE guilty. NSE then moved the Supreme Court for relief and its appeal is still pending.
As per the process, the MSE has filed an application for award of compensation against NSE for Rs. 856 crore before the COMPAT, pending the appeal. Now, as COMPAT has ceased to exist effective 26 May, 2017, all pending matters before the COMPAT stand transferred to the NCLAT.