NO RELIEF FOR NSE IN MARKET MONOPOLY SUITThe Competition Appellate
Tribunal (COMPAT) today declined to grant the National Stock Exchange
(NSE) interim relief in a market monopoly case. The Competition
Commission of India (CCI) had directed NSE to maintain separate
segment-wise financial records for equities, currency derivatives and
other segments. This comes on the heels of another stock exchange,
MCX-SX, approaching CCI against NSE alleging monopolistic practices,
where the latter was found gulity of such practices. NSE had pleaded to
COMPAT against this order but the appeal was rejected. Rejecting NSE's
appeal, COMPAT observed the CCI order was in accordance with the
competition laws in India. NSE had contended on March 15 that
maintaining separate segment-wise accounts would entail costs and would
be time-consuming. NSE has also stated this was not required under
accounting standard AS (17). COMPAT observed that NSE had made the fresh
appeal against CCI's order to maintain separate accounts "at the last
juncture", though they had ample opportunity to contest the order in
competent bodies. "Thus, if NSE is granted any interim relief now to
maintain separate accounts, then the direction would automatically be
pushed to the next financial year, that is, from April 2013," COMPAT
said. NSE will have to start separate segment-wise reporting from April
1. Although, COMPAT said it was not the competent body to decide on
regulatory issues like compliance of accounting standards, its order
could certainly hold NSE accountable for averments under AS (17), as
well as the undertakings made by NSE with CCI to comply with the
directions of CCI within the stipulated deadline. –
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