Description

Appellate Authority order on RTI appeal concerning information about SEBI's action and complaints related to Avadhut Sathe. Appeal dismissed as investigation details are confidential under RTI Act exemptions.

Summary

The Appellate Authority dismissed Appeal No. 6563 of 2025 filed by Sudhir G Kadam against CPIO, SEBI, Mumbai. The appellant had sought information under RTI Act regarding SEBI’s action against Avadhut Sathe after a raid, details of complaints received, and complaint filing options. The authority upheld the CPIO’s response that investigation details are confidential and exempt under sections 8(1)(d), 8(1)(e), and 8(1)(h) of RTI Act. Information on regulatory actions taken would be available on SEBI’s website.

Key Points

  • RTI application filed on August 30, 2025, seeking information about action taken against Avadhut Sathe
  • CPIO responded on September 17, 2025, citing confidentiality of investigations
  • Appeal filed on September 17, 2025 (Reg. No. SEBIH/A/E/25/00248)
  • Appellate Authority confirmed that SEBI cannot confirm or deny existence of examination/investigation
  • Investigation confidentiality maintained to prevent market speculation and protect evidence collection
  • Exemptions applied under RTI Act sections 8(1)(d), 8(1)(e), and 8(1)(h)
  • Regulatory actions and penalties, if any, would be published on SEBI website

Regulatory Changes

No new regulatory changes introduced. This is an appellate order reaffirming existing confidentiality practices for investigations under RTI Act.

Compliance Requirements

No new compliance requirements. The order clarifies that:

  • SEBI maintains confidentiality of ongoing examinations and investigations
  • Information about complaints and investigation details are not disclosed during investigation phase
  • Completed regulatory actions and penalties are published on SEBI website for public access

Important Dates

  • August 30, 2025: RTI application filed by appellant
  • September 17, 2025: CPIO’s response to RTI application
  • September 17, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00248)
  • October 9, 2025: Appellate Authority order issued

Impact Assessment

This order has minimal market impact as it is an administrative decision on an RTI appeal. It reaffirms SEBI’s existing practice of maintaining confidentiality during investigations to:

  • Prevent unwarranted market speculation
  • Protect evidence collection processes
  • Avoid unnecessary harm to third parties
  • Ensure integrity of regulatory examinations

The order clarifies that investors and public can access information about completed enforcement actions through SEBI’s website, maintaining transparency for finalized regulatory outcomes while protecting ongoing investigative processes.

Impact Justification

Administrative RTI appeal order with no market-wide regulatory changes or compliance requirements. Concerns individual's information request about investigation confidentiality.