Description

SEBI's appellate authority upholds denial of RTI request regarding Karvy client securities recovery, ruling queries seek opinion rather than information.

Summary

SEBI’s appellate authority dismissed Appeal No. 6455 of 2025 filed by Sanjay Kumar Paul, upholding the denial of his RTI application seeking information about his Karvy Stock Broking client securities recovery. The authority ruled that the appellant’s queries sought clarification and opinion rather than factual information as defined under the RTI Act. The appellant had requested details about his demat account’s inclusion in affected accounts, recovery status, and claim procedures following SEBI’s action against Karvy.

Key Points

  • Appeal filed by Sanjay Kumar Paul regarding RTI application denial about Karvy client securities recovery
  • Original RTI application sought information about specific demat account (Client ID: 1773XXXX) affected by Karvy’s pooled account misuse
  • SEBI’s CPIO responded that queries were seeking clarification/opinion, not “information” under RTI Act Section 2(f)
  • Appellate authority concurred with CPIO’s position that RTI Act doesn’t require creation or interpretation of information
  • SEBI directed appellant to approach NSE for claim process details as exchanges handle defaulter broker claims
  • Karvy Stock Broking was declared defaulter by exchanges via public notice dated November 23, 2020

Regulatory Changes

No new regulatory changes introduced. This decision reinforces existing interpretation of RTI Act scope regarding information vs. opinion/clarification requests.

Compliance Requirements

  • Affected Karvy clients must approach relevant exchanges (NSE/BSE) directly for claim processes
  • RTI applications must seek factual information available on record, not opinions or interpretations
  • Public authorities not required to create, interpret, or compile information under RTI Act

Important Dates

  • May 23, 2025: Original RTI application filed
  • May 30, 2025: SEBI CPIO response provided
  • June 26, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00153)
  • November 23, 2020: Karvy Stock Broking declared defaulter by exchanges

Impact Assessment

Limited direct market impact as this is an individual RTI appeal decision. However, it clarifies that SEBI will not provide individual client-specific information about defaulter broker claims through RTI mechanism. Affected clients must pursue claims through exchange-administered processes. The decision reinforces boundaries of information disclosure under RTI Act, maintaining that regulatory authorities are not required to provide interpretive or advisory services through RTI requests.

Impact Justification

Administrative RTI appeal decision with limited market impact, primarily affects individual client claim process rather than broader regulatory policy