The MCX-SX in its representation to the CCI in November 2009 had alleged that NSE had substantially reduced admission and trade related fees to eliminate competition and discourage other entities from entering the market. MCX-SX is promoted by commodity exchange MCX and Financial Technologies .
Based on this complaint, the CCI had ordered a probe into the alleged misuse of dominant position by the NSE.
Competition Commission of India (CCI) has issued a show cause notice to the National Stock Exchange (NSE) asking why a penalty should not be imposed for its unfair trade practices in connection with currency derivatives trading .
The commission has found NSE guilty of violating Section 4 of the Competition Act, which is abuse of dominant position. The Competition Commission of India (CCI) has sent the show cause notice to NSE before deciding on the quantum of fine to be slapped on it. Usually the CCI gives companies 15-20 days time to reply on notices.
Under the law, companies can be fined up to 10 per cent of their three year average profit.
Tags: Abuse of dominant position, cci, Competition Act