15 Jan 2010

Brawling Stock-exchanges knock CCI's door ...

A recent news update informs us that the actions of National Stock Exchange have been challenged as anti-competitive by a new stock exchange MCX-SX before the newly functional Competition Commission of India. This recent newspiece from the Finanal Express states that "The squabble between the country’s newest stock exchange, MCX-SX, and the dominant player, NSE, has reached the domain of the competition regulator, with MCX-SX lodging a compliant with the watchdog. The Competition Commission of India has embarked on an exercise to unravel the intentions of NSE through rigorous data collection and analysis".

It also informs us that this would be interesting to watch the brawl as "the regulator can take unprecedented steps to establish whether a market player is sacrificing returns now to cripple a rival so that it could gain later, say lawyers. CCI has the power to ask an accused to produce internal documents and communication that would reveal business plans adopted to ensure that there is no effective competition. Such documents can prove to be a smoking gun".

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