The Delhi high court on Wednesday asked the Competition Commission of India (CCI), India's anti-trust body, to give a copy of its order to National Stock Exchange (NSE) within a week explaining the basis of serving a show cause notice to NSE on abuse of dominant position. "CCI has to furnish the pet itioner any order forming the basis of penalty show cause notice. On principle of natural justice CCI is directed to furnish a copy of order dated April 29 within one week," Justice S Muralidhar said.
NSE had approached the Delhi High Court after the CCI imposed a show-cause notice on the bourse asking why penalty should not be imposed on it for allegedly abusing its dominant position in currency futures trading.
MCX Stock Exchange Limited (MCX-SX), the currency futures trading arm of Multicommodity Exchange,
had charged NSE of adopting predatory pricing techniques and abuse of dominant position that goes against market fair play.
MCX-SX had sought CCI's intervention to prevent NSE from offering several services at sharply lower charges and "discriminatory fee waivers" in the currency derivatives segment.
It alleged that in an unfair practice, NSE has waived off the transaction fee in its currency derivative segment, even though it charges a transaction fee of Rs 2 per lakh on the turnover in equity derivatives
Trading in currency futures was allowed in India in 2008 to allow exporters and importers to hedge against sharp fluctuations in value of international currencies.
These futures are traded on MCX-SX, NSE and the Bombay Stock Exchange.
