INSUBCONTINENT EXCLUSIVE:
New Delhi: The Competition Commission has dismissed a complaint of discriminatory conduct made against National Stock Exchange (NSE) with
regard to alleged preferential access extended to certain trading members in co-location case.
"The allegations against NSE are yet to be
established in an appropriate proceeding", Competition Commission of India (CCI) said in an order as it dismissed complaint.
The regulator
noted that genesis of NSE co-location case dates back to 2015, when a whistle-blower wrote a letter to Sebi alleging that NSE gave
preferential access to a few high-frequency traders and brokers to exchange's trading platform.
Sebi is already looking into case.
In a
complaint to CCI, Rajasthan-based advocate Jitesh Maheshwari had alleged that NSE by giving unfair access has limited and restricted
provision of services to other trading members availing co-location service
This resulted in denial of market access, thereby contravening Section 4 of Competition Act, he had alleged.
Section 4 pertains to abuse of
dominant market position.
"The Commission notes that it is apparent that Sebi is looking at similar issues as alleged in information by
informant (Maheshwari).
"However, exact role of Opposite Party (NSE) either direct or indirect, with respect to alleged contravention in
provision of preferential/ discriminatory co-location services is still at stage of investigation," CCI said in its order dated January
7.
The CCI noted that discriminatory and abusive conduct which contravenes provisions of Act falls within its jurisdiction and can be
independently examined by regulator based on facts and evidence.
However, due to insufficient information and data "it may not be apposite
for Commission to delve into allegations at present," it said.
