<p>As a penalty, NSE has been asked to pay five per cent of its three-year average annual turnover and also "cease and desist" of unfair trade practices in the currency derivative trading, sources said.<br /><br />According to the order, NSE has to stop subsidising its currency derivatives operations and refrain from pursuing any anti-competitive practices.<br /><br />While sources said that CCI passed the order this evening, an NSE official said they have not got any order as yet.<br /><br />Along with the majority the CCI order on May 25, the commission had issued a notice to the bourse before quantifying the penalty.Last month's order was passed with a majority vote of five members of the seven-member commission.<br /><br />Two members -- Anurag Goel and Geeta Gouri -- had dissented with the majority order, where NSE was found guilty of abusing its market dominance and following unfair trade practices in the currency derivatives market.<br /><br />However, CCI had already made its stand clear that the dissent note of the two members, which has been issued as per a court direction pursuant to a petition filed by NSE, would not affect its ruling, as a majority order is considered enforceable under the regulations.<br /><br />NSE entered currency derivatives in August 2008, followed by MCX-SX in October 2008 and later by USE in September 2010.<br /><br />The CCI order came after a year-long probe by CCI, which began after MCX-SX filed a complaint on November 16, 2009. The CCI sought a detailed probe into the matter by its Director General, which submitted its report in September 2010.<br /><br />After the DG's report found NSE to be guilty of anti- competition practices, the CCI conducted its further inquiry with various parties and issued a show-cause notice to NSE on April 29 this year and later its majority order on May 25.<br /><br />The matter had also reached Delhi High Court after the NSE approached the court with a plea that it could reply to the notice only after reviewing the complete order.<br />The court, on May 31, asked CCI to provide NSE by June 3 its complete order, including views of members dissenting with the majority ruling.<br /><br />NSE have an option to challenge CCI's order at the Competition Appellate Tribunal.</p>
<p>As a penalty, NSE has been asked to pay five per cent of its three-year average annual turnover and also "cease and desist" of unfair trade practices in the currency derivative trading, sources said.<br /><br />According to the order, NSE has to stop subsidising its currency derivatives operations and refrain from pursuing any anti-competitive practices.<br /><br />While sources said that CCI passed the order this evening, an NSE official said they have not got any order as yet.<br /><br />Along with the majority the CCI order on May 25, the commission had issued a notice to the bourse before quantifying the penalty.Last month's order was passed with a majority vote of five members of the seven-member commission.<br /><br />Two members -- Anurag Goel and Geeta Gouri -- had dissented with the majority order, where NSE was found guilty of abusing its market dominance and following unfair trade practices in the currency derivatives market.<br /><br />However, CCI had already made its stand clear that the dissent note of the two members, which has been issued as per a court direction pursuant to a petition filed by NSE, would not affect its ruling, as a majority order is considered enforceable under the regulations.<br /><br />NSE entered currency derivatives in August 2008, followed by MCX-SX in October 2008 and later by USE in September 2010.<br /><br />The CCI order came after a year-long probe by CCI, which began after MCX-SX filed a complaint on November 16, 2009. The CCI sought a detailed probe into the matter by its Director General, which submitted its report in September 2010.<br /><br />After the DG's report found NSE to be guilty of anti- competition practices, the CCI conducted its further inquiry with various parties and issued a show-cause notice to NSE on April 29 this year and later its majority order on May 25.<br /><br />The matter had also reached Delhi High Court after the NSE approached the court with a plea that it could reply to the notice only after reviewing the complete order.<br />The court, on May 31, asked CCI to provide NSE by June 3 its complete order, including views of members dissenting with the majority ruling.<br /><br />NSE have an option to challenge CCI's order at the Competition Appellate Tribunal.</p>