Description

SEBI Appellate Authority dismisses RTI appeal seeking clarification on IPO employee share allocation rules and IREDA Limited compliance violations.

Summary

SEBI’s Appellate Authority dismissed Appeal No. 6509 of 2025 filed by Vikas Jain under the Right to Information Act. The appeal challenged SEBI’s response to queries about IPO employee share allocation rules and potential violations by IREDA Limited. The Authority ruled that the queries sought legal opinion/clarification rather than information as defined under the RTI Act.

Key Points

  • Appeal filed on August 5, 2025 against CPIO SEBI Mumbai’s response dated August 5, 2025
  • Original RTI application dated July 12, 2025 sought information about IPO employee share allocation rules
  • Queries specifically asked about IREDA Limited’s compliance with employee share trading restrictions
  • SEBI responded by directing appellant to relevant regulations available on SEBI website
  • Appellate Authority upheld SEBI’s position that queries were seeking legal opinion, not information

Regulatory Changes

No regulatory changes introduced. The order reaffirms existing interpretation of RTI Act scope regarding legal opinions versus factual information.

Compliance Requirements

  • RTI applications must seek factual information, not legal opinions or clarifications
  • Public authorities not obligated to provide interpretations or situational advice under RTI Act
  • Appellant directed to refer to SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018 and SEBI (Share Based Employee Benefits and Sweet Equity) Regulations, 2021

Important Dates

  • July 12, 2025: Original RTI application filed
  • August 5, 2025: SEBI response and appeal filing date
  • Appeal registration: SEBIH/A/E/25/00201

Impact Assessment

Minimal market impact. This administrative ruling clarifies RTI Act boundaries but does not affect trading operations or compliance requirements for listed companies or IREDA Limited specifically.

Impact Justification

Administrative RTI appeal with no market impact or regulatory changes