Are you curious about the inner workings of stock exchanges and what information the Securities and Exchange Board of India (SEBI) can access and share with you under the Right to Information (RTI) Act? Many citizens believe that the RTI Act grants them access to virtually any government-held record. However, understanding the scope and limitations of what can be obtained is crucial. This case highlights a situation where an RTI applicant sought specific records from SEBI, which were held stock exchange. The Central Information Commission’s (CIC) decision clarifies when SEBI can be compelled to obtain and provide such information, offering valuable insights for all RTI users.
Background: What Information Was Sought
An applicant filed an RTI application with the Securities and Exchange Board of India (SEBI). They requested to inspect all records pertaining to applications for “in-principle listing” received Madras Stock Exchange between April 2008 and September 2010, along with the files detailing how these applications were processed and decided. Crucially, the applicant asked SEBI to obtain these records from the Madras Stock Exchange and provide them, citing Section 2(f) of the RTI Act, which defines “information” broadly. The Public Information Officer (PIO) at SEBI responded that the requested information was not available with their department.
How the Public Authority Responded
The Public Information Officer (PIO) of SEBI initially stated that the information sought applicant was not directly held . This is a common scenario in RTI cases where the applicant believes the information should be with the central authority, but it resides with a subordinate or related body. The PIO’s response indicated that SEBI did not possess the specific records from the stock exchange.
The CIC Hearing: What Happened
During the hearing before the Central Information Commission (CIC), the appellant argued that SEBI had the authority to obtain such information from the Madras Stock Exchange. They referred to Section 6 of the Securities Contracts (Regulation) Act, 1956, suggesting that SEBI possessed powers to call for records from stock exchanges. The core of the appellant’s argument was that if SEBI had the power to get the information, then under the RTI Act, they should be compelled to get it for the applicant.
The CIC Order and Its Significance
The CIC, after considering the arguments and the relevant legal provisions, made a significant observation. The Commission referred to Section 6(3) of the Securities Contracts (Regulation) Act, 1956. This section states that SEBI’s power to call for information from a recognized stock exchange is contingent upon SEBI being satisfied that it is in the interest of trade or in the public interest to do so. The CIC clarified that this provision does not grant SEBI an unfettered or absolute power to summon any information from any stock exchange simply because a citizen has requested it through an RTI application. The Commission further highlighted that Section 6(1) of the same Act mandates stock exchanges to furnish regular returns to SEBI, and Section 6(2) requires them to maintain and preserve various records as prescribed Central Government. SEBI also has the power to inspect these records. Therefore, SEBI would only possess information if it had prescribed such information to be furnished to it on a regular basis of returns from a recognized stock exchange. In such a scenario, the PIO would be in a position to provide it. The CIC ultimately rejected the appeal, ruling that SEBI could not be mandated to summon records from the Madras Stock Exchange solely for the purpose of providing them to the appellant under the RTI Act. This decision underscores that the RTI Act mandates providing information that is held by, or under the control of, the public authority, not compelling the authority to generate or collect information it doesn’t already possess or isn’t legally obliged to hold in a particular format.
Key Lessons for RTI Applicants
- Lesson 1: Understand Information Held vs. Information Obtainable: The RTI Act primarily deals with information that is *held* public authority or *under its control*. It does not generally empower an applicant to force a public authority to obtain information from a third party or another government body, especially if that information is not regularly submitted to the public authority.
- Lesson 2: Know the Statutory Powers of the Public Authority: While the RTI Act is powerful, the ability of a public authority to access information is also governed own parent statutes. In this case, SEBI’s power to call for stock exchange records was conditional and not absolute, limiting what could be demanded under RTI.
- Lesson 3: Focus on Information Regularly Supplied or Mandated: If you are seeking information that a public authority receives from other entities, it’s more likely to be accessible if it’s part of a statutory reporting mechanism or a regular exchange of data. Information that is ad-hoc or requires a special request to be generated body is often outside the purview of a standard RTI request.
How to File a Similar RTI Application
- Identify the Correct Public Authority: First, determine which public authority is the custodian of the information you need. If the information is held specific stock exchange, your initial application should ideally be to that stock exchange itself, if it’s a public authority. If you are seeking information about SEBI’s oversight of stock exchanges, then SEBI is the correct authority.
- Clearly Define the Information Sought: Be precise in your request. Instead of asking for “all records,” specify the type of records, the period, and the subject matter.
- Check Statutory Obligations: Research the parent act governing the public authority and the entity holding the information. Understand what information they are legally required to maintain or submit.
- Cite Relevant RTI Sections (Carefully): You can cite Section 2(f) for the definition of information and Section 7 for the time limits for providing information. However, avoid making demands that go beyond the authority’s statutory capabilities.
Sample RTI question you can use:
Under Section 2(f) of the RTI Act, 2005, please provide copies of all periodic reports or returns submitted by [Name of Stock Exchange] to SEBI concerning [Specify the type of listing or transaction] for the period [Start Date] to [End Date], if such reports are held .
Conclusion
This case serves as a valuable reminder that while the RTI Act is a powerful tool for transparency and accountability, its application is subject to the existing legal framework and the practical realities of information management within government bodies. Applicants should conduct thorough research and frame their RTI requests realistically, focusing on information that public authorities are mandated to hold or regularly receive. these nuances, citizens can significantly increase their chances of obtaining the information they seek and contribute to a more informed and empowered society.
