MCX to seek damages from NSE

A day following the Competition Commission of India (CCI) imposing a penalty of Rs55.5 crore on the National Stock Exchange for abusing its dominant market position, its rival MCX Stock Exchange is planning to make a claim for costs and damages it had to suffer due to what it alleges NSE's ''predatory'' practices.
 
The claim could work out to around Rs 300-400 crore including Rs150 crore of losses suffered by MCX in currency derivatives (CD) business due to the NSE's pricing policies, according to a source.

He added they could also claim damages and losses for opportunity costs, legal costs and other matters from the NSE, he added.

According to Dewang Neralla, co-founder, Financial Technologies India Ltd (FTIL), the promoter of MCX Stock Exchange, the bourse would now consult its legal counsel for its next course of action. He added that the bourse would continue to seek justice and its faith in the Indian judicial system stood vindicated.

The CCI order comes on a complaint filed by NSE rival MCX-SX, which had accused NSE of abusing its dominant market position to corner business in the currency derivatives (CD) segment (See: NSE penalised 5% of 3-year average turnover).

Meanwhile the NSE is also considering its future course of action following the order.

''We are reviewing the 4-2 majority CCI's order. We will consider our future course of action after reviewing the order and obtaining the opinion of our legal advisors,'' said an NSE spokesperson.