CCI penalised NSE for abusing position: Minister

On the appeal filed by NSE against this order of CCI, the Competition Appellate Tribunal has stayed the recovery proceedings

New Delhi: The government on Thursday said the Competition Commission of India (CCI) had imposed penalty on the National Stock Exchange (NSE) for abusing its dominant market position, reports PTI.

"MCX Stock Exchange filed a case against National Stock Exchange and others alleging violation of provisions (abuse of dominance) of the Competition Act, 2002," Minister of State for Corporate Affairs RPN Singh said in a written reply to the Lok Sabha.
 
He said the Commission imposed a penalty of Rs55.50 crore on NSE for contravention of the provisions of the Competition Act in its order dated 23 June 2011.

"On the appeal filed by NSE against this order of CCI, the Competition Appellate Tribunal (COMPAT) has stayed the recovery proceedings," Singh said.

Competition Commission of India (CCI) is the regulator for fair market practices and ensuring level-playing field.

Since CCI and COMPAT are quasi-judicial bodies, no action is required to be taken by the government, he replied when asked if any action was taken by it in this regard.

The NSE and MCX-Stock Exchange (MCX-SX) had entered into currency derivatives trading in August 2008 and October 2008 respectively, followed by United Stock Exchange (USE) in 2010.

However, in November 2009, MCX-SX filed a complaint against NSE for abusing its dominant position and thus violating the Competition Act.

After a year-long probe, CCI found NSE guilty of anti-competition practices and penalised it for abusing its dominant market position.

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Government makes norms stringent for incorporation of firms

Norms for incorporation of companies have been made more stringent by introduction of directors identification number and mandatory filing of all details of directors

New Delhi: In order to identify vanishing companies with public shareholding, the Indian government has formed a committee to monitor such firms and has made the norms stringent for incorporation of companies, reports PTI.

"A Coordination and Monitoring Committee (CMC) co-chaired by secretary Ministry of Corporate Affairs and chairman SEBI has been set up to identify and monitor the state of affairs of vanishing  companies," Minister of State for Corporate Affairs RPN Singh said in a written reply to the Lok Sabha on Thursday.

The CMC will also take appropriate action against such companies in terms of the Companies Act and SEBI Act, he said.

"...Norms for incorporation of companies have been made more stringent by introduction of Directors Identification Number (DIN) and mandatory filing of all details of directors," he added further to a query whether norms for vanishing companies had been tightened in view of the multi-crore Satyam fraud and to protect the interest of small investors.

He said, "As on date 86 prosecutions have been filed against companies presently identified as vanishing companies".

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