MSEI v/s NSE in Rs 856-crore predatory pricing case hearing on 10 October

MSEI logo showing new stock exchange
Shares of MSEI are in high demand as it is  India’s 3rd stock exchange after BSE and NSE.

The Rs 856-crore claim by Metropolitan Stock Exchange of India (MSEI) against National Stock Exchange (NSE) is scheduled for hearing by the National Company Law Appellate Tribunal (NCLAT) on 10 October 2017. MSEI had dragged NSE to the Competition Commission of India (CCI) citing monopolistic practices. The competition watchdog held NSE guilty and asked it to compensate MSEI.

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Metropolitan Stock Exchange of India (MSEI), India’s new stock exchange, is recognised by Securities & Exchange Board of India. It is India’s third functional and recognised stock exchange after BSE and NSE. There is huge demand for shares of MSEI due to strong listing of BSE and upcoming IPO of NSE.  A clutch of financial institutions now own more than 34% of MSEI, as do investors including Rakesh Jhunjhunwala, Radhakishan Damani and Nemish Shah.

In 2008, both MSEI and NSE launched currency future contracts almost simultaneously. NSE priced the transaction charges on these contracts at zero and given NSE’s dominant position, MSEI was left with no choice but to adopt zero pricing as well.

This made a significant and material dent in the financial position of MSEI, which filed a complaint with CCI alleging predatory pricing (waiver of transaction fees, data-feed fees and admission fees) wherein CCI found NSE guilty and imposed a fine of Rs 55.5 crore. NSE filed an appeal with the Competition Appellate Tribunal (COMPAT), which too found NSE guilty. NSE then moved the Supreme Court and its appeal is still pending.

According to the process, the exchange has filed an application for award of compensation against NSE for Rs 856 crore before COMPAT, pending the appeal. Now, as COMPAT ceased to exist (from May 26), all pending matters before COMPAT stand transferred to the NCLAT.

Udai Kumar, MD & CEO of MSEI,said, “MSEI started out as a fast-growing exchange with immense potential, when it was deeply impacted by the financial burden imposed by NSE’s predatory pricing. Speedy disposal of this matter is the need of the hour. “It will encourage transparency and compliance with existing competition laws and practices across the spectrum and also dis-incentivise anti-competitive practises and misuse of dominant position.”

Source:
http://www.thehindubusinessline.com/markets/stock-markets/nclat-to-hear-856cr-predatory-pricing-case-against-nse-on-oct-10/article9874459.ece

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MSEI to submit report on Rs 856 crore claim against NSE

MSEI logo showing new stock exchange
MSEI is India’s 3rd stock exchange after BSE and NSE

Metropolitan Stock Exchange of India (MSEI) is soon set to submit an independent report in support of its claim seeking Rs 856 crore as compensation from National Stock Exchange (NSE) at the Competition Appellate Tribunal (Compat).

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The nine-year old tussle relates to MSEI’s complaint against the NSE alleging abuse of its dominant position and predatory pricing in the currency derivatives segment.

MSEI, earlier known as MCX Stock Exchange (MCX-SX), is required by law to file an independent report by a chartered accountant validating the claims and the calculations based on which it had sought compensation. Incidentally, MSEI filed its compensation application in February 2015.

The dispute dates back to October 2008 when MCX-SX started offering trading in currency futures. Its larger counterpart, NSE, was already offering currency futures trading and was not levying any charges in the segment. This forced MCX-SX to offer currency futures trading for free.

CCI complaint

In 2009, MSEI filed a complaint against NSE at the Competition Commission of India (CCI) alleging that the zero-pricing strategy was an abuse of market dominance. NSE, it claimed, was cross-subsidising losses in the currency segment from profits in other segments like equity and equity derivatives.

In June 2011, CCI ruled in favour of MSEI and levied a penalty of Rs 55.5 crore on the NSE which challenged the ruling at Compat and then at the Supreme Court, which granted an interim stay on the penalty. Meanwhile, NSE started levying charges in the currency segment from August 2011.

Source: The Hindu

Fino Paytech and payments banks industry update

FINO Paytech to start payments bank operations from April
FINO Paytech and payments bank industry update

11 applicants had received in-principle approvals from the Reserve Bank of India (RBI) in August 2015 to open payments banks. Currently two entities have started operations and three had backed out citing business concerns.

Another one Fino Paytech is set to commence operations soon. https://buysellunlistedshares.com/2017/02/17/fino-paytech-to-launch-payment-bank-soon/

For buying or selling shares of Fino Paytech or any other companies, please click on buysellunlistedshares.com/buysell/

Fino Pay Tech Ltd
The company is waiting to receive final nod from RBI. Fino Pay Tech plans to launch payment bank in Maharashtra, Madhya Pradesh, Uttar Pradesh and Bihar with 400 branches in the initial phase. Fino Paytech intends to add 5 to 10 million customers to the existing base of over 28 million active customers.

The company provides a wide range of financial and large scale enrolment services such as door step banking, biometric banking solutions, remittances, lending, insurance, unique identification enrolments and direct benefit transfer payments through over 30,000 transactions points across more than 500 districts in the country.

Airtel Payments Bank
It became the first payment bank to start operations in November by launching pilot programme in Rajasthan. The bank plans to invest Rs3,000 crore and intends to convert at least 100 million out of its 270 million Airtel customers with the bank. MasterCard will provide payment processing solutions to the bank.

India Post Payments Bank
It became the second entity to start operations in January by launching pilot in Raipur and Ranchi. The government has so far allocated Rs500 crore. The bank plans to open 650 branches by September 2017.

Paytm Payments Bank
Vijay Shekhar Sharma has received final licence from RBI in January to set up his payments bank. Paytm Payments Bank is likely to launch with a pilot in parts of Uttar Pradesh and has received investments of Rs 220 crore from Sharma and One97 Communications. The bank has set itself a target of 200 million accounts, across current and savings accounts, and mobile wallets, within 12 months of the launch.

National Securities Depository Ltd
The depository intends to start operations in two months and is finalizing on a team which will handle payment bank operations.

Aditya Birla Nuvo Ltd
No defined plans regarding operations released in the public domain.

Vodafone m-Pesa Ltd
It received equity infusion worth Rs 47,700 crore from its parent company. No defined plans regarding operations in the public domain.

Reliance Industries Ltd
It signed an agreement with State Bank of India (SBI). No defined plans regarding operations are released in public domain.

Payment banks, unlike full fledged banks, do not offer loans and several other facilities. Also, they are not allowed to accept deposits over Rs 1 lakh.

Source: Livemint

Fino Paytech to launch payment bank soon

FINO Paytech to start payments bank operations from April
FINO Paytech to launch payment bank soon

Fino Paytech is set to soon launch payment bank in Maharashtra, Madhya Pradesh, Uttar Pradesh and Bihar with 400 branches in the initial phase with focus on areas having maximum domestic remittances to extend its banking services. Currently, only Airtel and India Post have started their payment bank operations.

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With a target of opening 400 bank branches across 30 cities on its opening day, Fino will also provide the basic services of account opening and cash withdrawal in additional 15,000 access points outside these branches.

Fino will provide services like basic banking products such as withdrawal and deposits as well as third-party products like insurance and remittances while continuing to serve their primary responsibility of a technology-solution provider and banking correspondent (BC) to other banks.

Another 15,000 petrol pumps and liquified petroleum gas (LPG) outlets, where Fino already has a presence due to its partnership with Bharat Petroleum Corporation Ltd (BPCL), will also be incorporated in the exercise.

In order to supply the third-party products, Fino has tied up with a lot of companies. Our tie-up with BPCL will help enhance out our physical infrastructure and reach. We have also tied up with ICICI Bank as partner bank that allows to offer ICICI’s banking products to our customers, for insurance we have ICICI Prudential and Lombard and for international remittances we have tied up with Western Union, Express Money, Transfast etc.

Fino Paytech is one of the entities to have received an in-principle approval from the Reserve Bank of India (RBI). In 2015, 11 companies had received an in-principle approval from the RBI to offer payments bank services.

Of these, three—Cholamandalam Distribution Services, Sun Pharmaceuticals and Tech Mahindra—have surrendered their licences. The other entities—Aditya Birla Nuvo, National Securities Depository, Reliance Industries Ltd and Vodafone m-pesa— are also expected to roll out their services soon.

Fino Paytech is touted to be the biggest beneficiary of Demonetisation
https://buysellunlistedshares.com/2016/11/21/fino-paytech-demonetisation/

PayTM Payments bank to go live on 21 February 2017

Paytm Payments Bank Ltd, which got a final approval from the Reserve Bank of India last month to run and operate a payments bank in the country, will start commercial operations on 21 February 2017.

For buying or selling shares of Fino Paytech or any other companies, please click on buysellunlistedshares.com/buysell/

Rivals such as Airtel and India Post have already launched their operations and have been pushing it through massive advertisements and campaigns.

Other applicants such as Fino Paytech, National Securities Depository and Mukesh Ambani-led Reliance are also likely to launch their respective banks by May.

Paytm Payments Bank plans to leverage its wallet business that will soon get merged with the banking entity.

Fino Paytech is touted to be the biggest beneficiary of Demonetisation
https://buysellunlistedshares.com/2016/11/21/fino-paytech-demonetisation/