MCX-SX to sue NSE for compensation
MCX Stock Exchange, engaged in a bitter battle with the National Stock Exchange (NSE) claiming abuse of dominant position by the latter, is set to file for compensation with Competition Appellate Tribunal by month-end.business Updated: Jul 15, 2011 21:52 IST
MCX Stock Exchange, engaged in a bitter battle with the National Stock Exchange (NSE) claiming abuse of dominant position by the latter, is set to file for compensation with Competition Appellate Tribunal by month-end.
MCX SX suffered a loss of more than Rs 150 crore in the last three years as customers stayed away from the exchange, said a source on the condition of anonymity. However the compensation amount could exceed Rs 500 crore, the source added.
"We have not yet decided on the quantum, a team is working on the issue and it would be finalised soon. We will file a claim on compensation, which is justified," Ashok Jha, chairman, MCX SX, told HT.
MXC SX also plans to rope in a third party to assess the estimated loss and the claim amount. The tribunal would take the final decision on the claim amount, Jha said.
NSE, meanwhile, is planning to appeal to the appelate tribunal. "It is an on going case and until the matter is fully heard, MCX SX’s claim is not relevant," said an NSE official on the condition of anonymity.
The anti trust body — Competition Commission of India (CCI) — imposed a penalty of Rs 55.5 crore on the NSE after finding the bourse guilty of abusing its dominant market position.
The CCI has charged the NSE of indulging in predatory pricing in its currency derivative segment by offering services at no cost. MCX-SX alleged that this was anti competitive.
According to MCX-SX's complaint lodged with the CCI, the fee and deposit waivers of NSE amounts to predatory pricing and is in violation spirit of the Competition Act, 2002.