India - CCI Dismissed Case Against NSE Alleging Violation Of Section 4 Of CA02

Legal News & Analysis - Asia Pacific - India - Competition & Antitrust

13 February, 2019

 

On January 7, 2019, CCI dismissed information filed by Jitesh Maheshwari against National Stock Exchange of India Limited (‘NSE’) alleging violation of Section 4. The informant highlighted that the current case ongoing with Securities Exchange Board of India (‘SEBI’), Income Tax Department (‘ITD’) and Central Bureau of Investigation should also be investigated by CCI for contravention of Section 4 of the CA02.[1]

 

The information pertained to co-location services provided by NSE to traders where the traders availing the service were granted access to confidential information about traded prices of shares ahead of other traders. It was alleged that from the year 2010-2014, NSE abused its dominant position by providing preferential access to some trading members of its co-location services thereby distorting competition with the trading members not availing of such facility.

 

 CCI noted that the case is currently under adjudication by SEBI, and the exact role of NSE with respect to the alleged contravention is being investigated and that the information available against NSE was insufficient to find a contravention of Section 4 of the CA02. Accordingly, CCI ordered the matter to be closed.

 

[1] Case Number 47 of 2018.

 

For further information, please contact:

 

Zia Mody, Partner, AZB & Partners

zia.mody@azbpartners.com