Regulations
Competition Appellate Tribunal upholds CCI order against NSE

The COMPAT upheld an order passed by CCI, which had found NSE guilty of abusing its dominant market position in currency derivatives segment

 

The Competition Appellate Tribunal (COMPAT) on Tuesday upheld the directives passed by Competition Commission of India (CCI) against National Stock Exchange (NSE).

 

In June 2011, the CCI had imposed a penalty of Rs55.5 crore on NSE for 'abusing its dominant position in the currency derivative market by cross subsidising this segment of business from other segments where it enjoyed virtual monopoly'. MCX Stock Exchange (MCX-SX), in 2009 had filed a complaint alleging that NSE was indulging in unfair practices by waiving the transaction fee on currency derivatives.

 

Reacting on the COMPAT order, NSE said it would appeal against the decision. “NSE will appeal the order of COMPAT and we will do the needful after going through the detailed order. Whatever we have done was in the interest of the development of capital markets. A suitable review of the implications will be done in due course," the Exchange said in a statement.

 

In its order dated 23 June 2011, the CCI had imposed a Rs55.5 crore fine on NSE for abusing its dominant market position and asked the bourse to stop unfair trade practices like subsidising its services with a zero-price regime in the currency derivatives segment.

 

Imposing a penalty equivalent to 5% of the bourse's three-year average turnover, the CCI had said there was "a clear intention on the part of NSE to eliminate competitors in the relevant market".

 

The CCI order followed a months-long probe into the matter after a complaint from the NSE's younger rival, MCX-SX.

 

NSE, then challenged the CCI order before the COMPAT . During its first hearing in August 2011, the COMPAT granted a conditional stay on the Rs55.5 crore penalty order but asked the bourse to comply with the other directions of the fair-trade watchdog in this matter. The Tribunal also directed NSE to give an undertaking that it would have to pay the full penalty, along with interest at the rate of 9% per annum, if it loses the case.

 

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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COMMENTS

Nagesh Kini

2 years ago

The NSE seeking another appeal is a waste of public money and must be stopped.
The CBDT has wisely decided to curb frivilous appeals by the tax dept. that they invariably end up losing.

RBI manages its ‘Financial Inclusion’

Educational loan for staff hiked to Rs20 lakh @ 5%

 

While RBI is gearing up to play a key role in the grand plan to bring 150 million households into the formal financial system, RBI employees have obtained a nice fat ‘financial inclusion’ of their own.

Reserve Bank officials already enjoy the most generous perks among government employees, covering every conceivable personal expense including books, computers, gadgets, petrol expenses, in addition to generous travel allowances with few questions asked.
 
If this were not enough, their children were entitled to a hefty education loan of Rs10 lakh at a concessional rate of 5% to 8%.  The central bank has recently doubled the limit for this concessional loan to Rs20 lakh at the same low interest. It is no surprise then that so many children of central bankers can afford a foreign education.

What is certainly a surprise is that so many of these children then end up working for Indian and foreign banks under RBI’s regulation. Is it any wonder that RBI has only recently begun to work on a consumer charter and it supervision remains rather ineffective?

User

COMMENTS

Amiit Gupta

2 years ago

This is really shows a wrong style of working by Dear Central bank..What message they want to given to Middle class indian society? Now every indian must say that RBI also need a REGULATOR now to control their monopoly.
ITS not acceptable DEAR RBI.Please work for aam indian family & person , not only for your own employee & their family who are already a HIGH Class RICH Family.
Think good from this Teachers Day & work for better society only without difference with your power.

Ramesh B Mhadlekar

2 years ago

RBI has exploited its Labour the Class IV &Class III employees who fall in the category of workmen by denying them the Central bank allowances which are paid only to the officer of RBI. Is it not exploitation or discriminative policy towards the labour class? Are the workmen of RBI not Central bank employees?
The Ex-regional directors of Mumbai’s claim of overtime continuously for 5 months as per the RTI, admits that the private driver was continuously used or exploited without giving him a break for one day every week for 5 months continuously, which is gross violation of Human Rights and the labour laws. Is this act of the EX-Regional director Mumbai not exploitation of Labour?
For such gross violations of Labour law and Human Rights, he has been rewarded by being appointed as Administrator of Coop bank at Nasik.

Madhur Aggarwal

2 years ago

We are number obsessed country .
I wonder Why
Numbers of Gross violation
- Unfair MP/ MLA/ Bureacracy Salary hikes do not create Hue n cry in Country like
price of tomato- Rs 100 kg .
Rise in Electricity bills.
There is something seriously wrong with the numbers in India.
They seem to be more inclined in favour of Ruling Class (Public servants ) than Citizens.

S.S.A.Zaidi

2 years ago

i could nt access Sucheta Dalal comment

vijay s

2 years ago

Ms. sucheta dalal is known for her anti RBI views as she failed to get in to RBI's communication deppt. Rather than concentrating on much bigger issues she is criticizing education loan , i.e.loan AND REPAYABLE. also it is one of the organizations where unlike Central/ state Govt you do not have to pay to get your work done. nor there is exploitation of any kind of labour or other facility.Also DGs are not in strict sense RBI employees.Politicians and IASs are jealous of RBI as they can not interfere with RBI as much as they would love too. Journalists are also unhappy as there are not many controversies about rbi FOR THEM TO GET 'breaking news.
Vijay Sangu

REPLY

Ramesh B Mhadlekar

In Reply to vijay s 2 years ago

RBI has exploited its Labour the Class IV &Class III employees who fall in the category of workmen by denying them the Central bank allowances which are paid only to the officer of RBI. Is it not exploitation or discriminative policy towards the labour class? Are the workmen of RBI not Central bank employees?
The Ex-regional directors of Mumbai’s claim of overtime continuously for 5 months as per the RTI, admits that the private driver was continuously used or exploited without giving him a break for one day every week for 5 months continuously, which is gross violation of Human Rights and the labour laws. Is this act of the EX-Regional director Mumbai not exploitation of Labour?
For such gross violations of Labour law and Human Rights, he has been rewarded by being appointed as Administrator of Coop bank at Nasik.

Ramesh B Mhadlekar

In Reply to vijay s 2 years ago

The RBI is an Autonomous body, but it has dishonestly affixed stickers of Government of India on its official vehicles, to dishonestly avail the benefits of parking their vehicle in the Parking Slot meant for Government vehicles at Railway Station, Airport, etc., to avoid tolls at certain toll naka, to get a salute from a road traffic constable, allow the vehicle to be parked in places where the ordinary citizens would not be allowed to park the vehicle or would have to pay Penalty, avoid checking’s of the car during Naka bandhi etc. It is for the readers to decide about the honesty in such acts and the said cars are being used by the top executives and their family members proudly.

Dhoot Usha

In Reply to vijay s 2 years ago

I do not agree with the comments of Vijay Sangu. In order to gag the voice of my husband who had invoked RTI for his purloined financial bill, I got a threatening letter from officials of RBI outraging my modesty and cautioning me of the dire consequences, that my husband (an employee of RBI) would have to face if he will continue to invoke RTI Act, 2005 for his legitimate right. The functioning and thinking of the officials will not change. I wrote to Governor Shri Raghu Ram Rajan, but till date no reply for my complaint from his office. Further, the officials of RBI had claimed that it was my presumption that the letter was sent by RBI officials, but could not produce any documentary evidence for their conclusion of presumption.
No action has been initiated by the Governor against the guilty officials who had breached the secrecy clause of the RTI Act by revealing the name of my husband to other officials who had purloined the financial bill of my husband. This also shows the respect towards the law passed by the supreme Parliament by RBI Officials. The officials need not have to pay from their pocket to fight litigations since they have battery of lawyers behind them (and with tax payer’s money) so that they can make mockery of the Laws of the Land.
Further, when I lodged a complaint against one of the officials for handling my complaint in a shoddy manner I was surprised that instead of investigating my charges on the said official, the complaint has been handled by the said officer against whom I had lodged a complaint. How one can expect justice?
This is how the RBI functions? There is no transparency and hence no controversy comes out from the Ivory Tower. It is easy to criticise the Central, State Government and journalists.
What you have to say on this?????

Amiit Gupta

In Reply to Dhoot Usha 2 years ago

Please fight till you get result..
FIGHT if you are RIGHT..
We are with you.

Sucheta Dalal

In Reply to vijay s 2 years ago

This comment is a sad and pathetic lie. 


Since you are clearly from the RBI, do show me evidence that I had ever sought or applied for any post at the RBI, leave alone the communications department. Or, for that matter, any other PR or image management company ever. 

Your comment shows that neither you nor your kind begin to understand what drives some of us journalists. 
I personally believe that I have been amply rewarded and recognised for my effort, without having lobbied for it. Had I, as you claim, hankered for an RBI communications job, I doubt it would have merited a Padma Shri. That is a richer recognition than money or perks, don’t you think?

Do try to think a little before spewing venom, because it does no credit to the Reserve Bank of India. It is interesting that you mention the Communications Department and NO OTHER, since this department has remained nasty and hostile to me ever since 1992 after I broke the Harshad Mehta scam. 
Is it possible that former journalists have issues being on the other side of the fence and are NOT satisfied by the fat perks they draw and the power that they abuse by playing a game of exclusion and vilification?
I have been bad-mouthed to every Deputy Governor and Executive Director since 1992. It is 22 long years of putting up with this. And my source of information is people at the highest level at RBI who have informed me about these vituperative allegations. But we still continue to make our efforts at advocacy and financial literacy with what little support we get from some fair minded individuals at the RBI.
Isnt it also uncanny how so many retired RBI officers seem to read, like and contribute to Moneylife? Clearly we are doing something right!
Thank you for raising this and giving me an opportunity to put some facts in the public domain!

Amiit Gupta

In Reply to Sucheta Dalal 2 years ago

Nice Reply Sucheta ji..

Madhur Aggarwal

2 years ago

I can understand loan at concessional rates bcoz education is essential for human development.
What I don't like at all is
placing these kids in RBI or related Govt. services post education completion .
What a life these kids have
No hunting for Food !!
Correction course
- Education loan should be between 3- 5 % for every child in India .
- No compromise screening procedure in RBI and Govt. services to remove Daddy's Clout on the system .
These kids sometimes know things before job interviews and test which a normal candidate don;t have access to .

REPLY

Ramesh B Mhadlekar

In Reply to Madhur Aggarwal 2 years ago

Concessional loan for education for whom who draw 6 figure salary and above the six figure get perquisites in the form of lunch coupons, double LFC for husband and wife working in RBI every alternate year,which is never available in any Government organisation only one of them can claim LFC or LTC once in two years and many other perquisites,which if put on the website could shock wave to the citizens of this country,the petrol to the lowest staff of RBI which even Commercial bank do not provide to their officials,the person staying in the premises also gets petrol allowances upto 300 liters per month depending upon the post held on mere declaration of having used the vehicle for reaching office,that is they drive their vehicle in the lift to reach office and for official work either taxi fare or tourist vehicle is booked for such officials etc.etc. etc. etc. never ending list.It is high time that the country decides whether such subsidies are to be given to employees who are financially well off?What crime poor farmers have done, whose subsides are being reduced or have to commit suicide?It is high time that the people of this country have to decide whether subsidized loans and interest free loans have to be stopped or not?

S.S.A.Zaidi

2 years ago

Ms Sucheta Dalal is a straiught forward and no nonsense journalist.I dont know her personally but as i have guaged from her writings she will not deviate from the right path to score some brownie points or to curry favour.so pls dont brand her as Anti RBI-If she feels some RBI policies are not in the interest of Public she will voice her opinion.I hope i will not be categorised as a psychophant

REPLY

Ramesh B Mhadlekar

In Reply to S.S.A.Zaidi 2 years ago

Writing truth against RBI requires guts and those who have guts to write truth would be branded as anti RBI.

S.S.A.Zaidi

In Reply to Ramesh B Mhadlekar 2 years ago

And she has guts.

Ramesh B Mhadlekar

2 years ago

If CAG audits the Reserve Bank,it will open can of worms.Especially the foreign tours and many other such issues.The RBI as per RTI has not put the details of foreign tours on its website.Can it explain why?The DOPT has issued circular in the said matter which has not been implemented by the Reserve Bank of India.

Gopalakrishnan T V

2 years ago

The RBI was a very conservative employer and the old timers had suffered without any of the perquisites and privilges.Old timers particularly those who retired prior to 2007 are suffering even today for want of adequate pension and their demand for an updated pension on par with Central government employees has not yet been acceded to though there is an agreement to pay pension on par with Government employees. What ever is stated may be of recent trend and perhaps these perks and privileges may be the reason behind RBI for being free from corruption Charges. When Children get good education naturally they get well employed and all employments of Children of RBI Executives in Indian Banks and Foreign banks cannot be attributed to RBI's regulatory Control on these banks.There may be exceptions.

REPLY

Ramesh B Mhadlekar

In Reply to Gopalakrishnan T V 2 years ago

Can you justify the claim by Ex-Regional Director Mumbai claiming overtime for his driver for all 5 months continuously as per RTI, or negatively having exploited his driver for 150 days continuously without giving a break for a day which is mandatory as per Labour law and Human Right even during his absence from headquarters,which is 8th wonder of the world and having been appointed in a lucrative job for his dishonest acts as a administrator in a coop bank at Nashik. What would you say about such bogus claims of the said executive,will you term this as honest executive or a corrupt executive?

Sanjaya M

2 years ago

M/s Sucheta dalal's anti-RBI Views are well known. But this is after all a loan and repayable from salary of the employee. RBI employee children do not enjoy any State Governments subsidiesed education plans and have to pay full- the educations cost have increased all over. State and Central Govt Officers and emloyees also enjoy much better perks. It would be appreciated if RBI AND GOVT POLICIES are focused for criticisam rather than the employee perks - after all they form insignificant part of expenditure.
Sanjay

REPLY

Ramesh B Mhadlekar

In Reply to Sanjaya M 2 years ago

RTI reveals RBI pays ex DG of RBI Rs 67000 for self&Rs.38000 for wife reading glasses &there is no limit for such claims as per RTI.
Also RTI reveals that a car was purchased for a DG few days or a month before quitting RBI for Rs.18,69,547/- and sold the same for 8,67,712/-at a discounted value of approx 10 lacs, whether these facilities are given to the Central Government employees or State government employees?
The wage revision of Government employees are once in 10 years and the wage revision of RBI employees is every 5 years if you want to compare the benefits of central Government or state government employees prepare a chart of perquisites and publish the same and let the readers decide who gets more perquisites?.

S BHASKARA NARAYANA

In Reply to Ramesh B Mhadlekar 2 years ago

Only 10% depreciation is allowed on cars each Financial year. Hence, even his retirement crosses March, it comes to Rs.1,86,954/- only, but not Rs.10 lacs. Central Vigilance Commission clearly says, it is dishonest act.

Rakesh Goyal

In Reply to Sanjaya M 2 years ago

Mr. Sanjaya M - Disagree with your views.

Ramesh B Mhadlekar

In Reply to Sanjaya M 2 years ago

Can RBI publish the perks it gives to its officials which would shock the nation.The perks and benefits are such which even the IAS officers would not be getting.Why are they shying from putting all the perks on the website which is mandatory to be published on the website as per The RTI Act 2005.
Can you justify the official luxurious and air conditioned banks car being used unlimited by family members including earning spouses and children @1Re per Kilometer,which is also not deposited by them.What is it honesty or dishonesty?

S.S.A.Zaidi

2 years ago

I wonder ; Is it really ""FINANCIAL INCLUSION ""???
Charity begins at home-

REPLY

Nagesh Kini

In Reply to S.S.A.Zaidi 2 years ago

Yes this in deed is a classic case of "Charity begins at home", why not enhance it for all education loans extended by commercial banks too?

Ramesh B Mhadlekar

2 years ago

Why for children the executives have formulated policies whereby their family members can enjoy the luxurious Air conditioned official car of RBI at the @Re 1 per kilometer,the cheapest travel in the world,even a footpath dweller or a beggar pays more for his travel.

One of their executive's as per information procured under the RTI act reveals that the Ex-Regional Director of Mumbai was claiming overtime for his private driver even during his absence from headquarters which was nothing but a dishonest claim and has been rewarded after retirement of being appointed as a Administrator of a cooperative bank in Nashik.

A Sahara for Business Barons?

Subrata Roy makes himself at home in Tihar

 

SEBI vs Sahara will rank among the most unique trials in India’s legal history; the twists and turns just don’t stop. The latest is that a jailed businessman, with a dodgy record of financial disclosures, gets to negotiate a sale of assets to raise bail of over $1.7 billion from a conference room set up at Tihar jail.


Now, Tihar has been temporary home to an array of powerful politicians, industrialists, celebrities and moneybags. But it is the first time that anyone has been permitted to set up video-conferencing facilities inside the jail to raise a spectacularly large bail.

Sahara’s ability to gobble up top global hotels in New York and London like mid-morning snack is a bit of a mystery; but there is clearly no shortage of buyers ready to bid for these marquee properties. The question is: Will Subrata Roy want to negotiate fast, sell quick, post bail and get out of Tihar jail, which has been his home since March 2014? Or will the comforts of a conference facility, with attached toilet and separate annexe, and the long negotiation time granted by the Supreme Court make this a protracted negotiation?


A lot would depend on the advice of Harish Salve, who is the latest in a line of extremely high-profile, powerful and expensive lawyers who have appeared for Sahara Pariwar, starting with the formidable Fali Nariman. Mr Salve has already obtained house arrest-like facilities for Mr Roy. He will have secretarial assistance and visitors will not be identified so long as they allow themselves to be frisked. In essence, visitors to the jail facility will find it easier than going past an airport security check which requires a valid boarding pass and identification.

Subrata Roy, who boasts close personal friendship with every politician, industrialist, cricketer and filmstar that matters in India, has been in jail for failing to refund Rs24,000 crore raised through debenture-like instruments floated by two group firms, namely, Sahara Housing and Sahara Real Estate.


This was after a two-year trial during which a series of top lawyers made astonishing charges against regulators and judges in court and Sahara itself issued bizarre full-page advertisements in newspapers across India. The trial was so nerve-wracking for the apex court judges that the court recorded its anguish over the “psychological offensives, mind games, affronts, jibes and consciously planned snubs” against the Bench by Sahara’s legal team. One SC judge even recused himself.

The trial has been just as hard, although lucrative, for a galaxy of top lawyers. Bar & Bench, a legal blog, points out  those who appeared for Sahara include Ram Jethmalani, Aryaman Sundaram, Rajeev Dhawan, Gopal Subramaniam, Ravi Shankar Prasad, Abhishek Manu Singhvi and several others.

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COMMENTS

SANAT KUMAR KAR

2 years ago

Point to note here is that how could the depositors get back a similar amount of money and why not bond holders. Has it something to do with different regulators and their different approaches to similar issues.

Lokesh C Sharma

2 years ago

I have worked with Sahara India Pariwar for almost 16 years. In my crucial 16 years of my professional life I have learnt so many aspects & perspective of life in the able guidance and leadership of Saharasri. He is not only the Managing Worker & Chairman of the Pariwar but more than a father figure for all of us. But it is most unfortunate that a person like Saharasri without committing a crime is behind the bars because of lethargy, crookedness, incompetence, lack of knowledge and revengeful attitude of some so called bureaucrats, who treat themselves as the God Father of the investors, whereas they are far away from the ground realities. They treat themselves as public servant; on the contrary they are treating public as their servants. I hope that every citizen of India will agree that “INJUSTICE ANYWHERE IS THREAT TO JUSTICE EVERYWHERE”.

Abhinav

2 years ago

It was unfair with Sahara, but its time for Subrata Roy to come out and fight back for Sahara's pride. I trust Sahara and I support Sahara.

Kavi

2 years ago

Its been a hard time for Sahara. But we have faith in it. Sahara is India's largest group in employment and is pride of India.They have adopted several villages and also contributed a lot in the growth of India. I believe in Sahara and I am with Sahara.

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