Description

SEBI's Appellate Authority upholds denial of RTI request for frozen demat account details, ruling information not maintained by SEBI.

Summary

SEBI’s Appellate Authority dismissed RTI Appeal No. 6457 of 2025 filed by Kinnary Virendrasinh Vaghela regarding a frozen demat account with Religare Broking Ltd. The appellant sought specific reasons for the account freeze implemented since September 2019, but SEBI upheld the original response that such information is not maintained by SEBI in the normal course of securities market regulation and therefore not available under the RTI Act.

Key Points

  • Appellant’s demat account (Client ID 17XXXXXX, DPID IN301774) frozen by Religare Broking since September 13, 2019
  • Freeze implemented under SEBI circular dated May 3, 2018
  • SEBI stated it does not maintain specific account freeze information in normal course of regulation
  • Appeal dismissed as RTI Act only provides access to existing information, not information that must be created
  • Appellant directed to contact Depository Participant directly or file complaint on SCORES website

Regulatory Changes

No new regulatory changes introduced. The order reaffirms existing RTI Act principles that public authorities are only required to provide information that exists in their records, not create new information for applicants.

Compliance Requirements

  • RTI applicants must understand that SEBI can only provide information available in its existing records
  • Investors with frozen demat accounts should contact their Depository Participants directly for specific reasons
  • Complaints regarding frozen accounts can be filed on SCORES website for resolution

Important Dates

  • Original RTI application: May 19, 2025
  • SEBI response: June 13, 2025
  • Appeal filed: June 27, 2025
  • Account frozen since: September 13, 2019

Impact Assessment

This order has minimal market impact as it involves an individual case and does not establish new regulatory requirements. It clarifies the scope of information available under RTI from SEBI regarding individual account issues. The ruling reinforces that investors must pursue account-related issues through proper channels (Depository Participants, SCORES) rather than RTI applications, as SEBI does not maintain detailed records of individual account actions taken by intermediaries.

Impact Justification

Individual RTI appeal case with no market-wide implications; establishes precedent for information availability under RTI Act