Description
RTI appeal regarding public disclosure of RCA (Root Cause Analysis) reports for technical glitches by stock exchanges NSE and BSE under SEBI Circular SEBI/HO/MIRSD/TPD1/P/CIR/2022/160.
Summary
SEBI’s Appellate Authority rejected an RTI appeal filed by Sandeep V seeking information about implementation of Clause 9 of SEBI Circular dated November 25, 2022 regarding public disclosure of Root Cause Analysis (RCA) reports by stock exchanges NSE and BSE for technical glitches. The appeal was rejected on grounds that the information is exempt under Sections 8(1)(a), 8(1)(d) and 8(1)(e) of the RTI Act as it involves fiduciary relationship, confidential commercial information, and strategic regulatory decision-making.
Key Points
- Appellant sought certified copies of implementation status reports, compliance submissions, exemptions/waivers, and inspection/audit reports related to Clause 9 of SEBI Circular SEBI/HO/MIRSD/TPD1/P/CIR/2022/160 dated November 25, 2022
- Application filed on August 06, 2025; CPIO response dated September 03, 2025; Appeal filed September 05, 2025 (Reg. No. SEBIH/A/E/25/00234)
- SEBI denied information citing it pertains to internal functioning, regulatory inputs, and strategic decision-making
- RCA reports contain critical information about trading architecture of stock broker systems and are confidential
- Information exempt under RTI Act Sections 8(1)(a) - strategic affairs, 8(1)(d) - commercial confidence/fiduciary relationship, and 8(1)(e) - third party confidential information
- Appellate Authority upheld that documents received by SEBI from entities are in fiduciary relationship and disclosure would breach confidentiality
Regulatory Changes
No regulatory changes. This is an RTI appeal decision maintaining existing confidentiality provisions for regulatory information held by SEBI.
Compliance Requirements
No new compliance requirements. The order affirms that SEBI is not required to disclose:
- Implementation status reports and compliance submissions from stock exchanges
- Exemptions, waivers, or modifications granted regarding RCA report disclosure
- Inspection reports, audit reports, or review notes regarding stock exchange compliance
- Information received in fiduciary capacity or containing commercial confidence
Important Dates
- August 06, 2025: RTI application filed by appellant
- September 03, 2025: CPIO response denying information
- September 05, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00234)
- October 03, 2025: Appellate Authority order issued
Impact Assessment
Minimal market impact. This is an administrative decision on RTI disclosure exemptions with no operational or regulatory changes. The order reinforces SEBI’s position on maintaining confidentiality of regulatory information, fiduciary documents, and strategic decision-making processes. It does not affect market participants’ obligations or stock exchange operations.
Impact Justification
RTI appeal rejection with no market-wide impact; relates to administrative disclosure processes and confidentiality of regulatory information