Description
RTI appeal seeking information about investor protection fund claims against Raghukul Shares India Pvt. Ltd dismissed as stock exchanges are not public authorities under RTI Act.
Summary
The Appellate Authority under the Right to Information Act, 2005 dismissed Appeal No. 6592 of 2025 filed by Himmat Singh Shekhawat. The appellant sought information regarding investor protection fund claims filed against Raghukul Shares India Pvt. Ltd between April 1, 2018 and March 31, 2025. The appeal was dismissed because stock brokers and stock exchanges (NSE and BSE) do not fall within the definition of “public authority” under Section 2(h) of the RTI Act as per current legal position, with the matter being sub judice before higher courts.
Key Points
- Appellant filed RTI application on August 20, 2025 seeking details of investor protection fund claims against Raghukul Shares India Pvt. Ltd for period April 1, 2018 to March 31, 2025
- CPIO responded on September 15, 2025 directing appellant to contact stock exchanges as they handle claims related to defaulter brokers
- Appeal filed on October 11, 2025 (Reg. No. SEBIH/A/E/25/00275)
- Appellate Authority dismissed appeal citing that stock brokers and exchanges are not public authorities under RTI Act
- Matter regarding NSE’s status as public authority stayed by Delhi High Court Division Bench (LPA 315/2010 dated May 4, 2010)
- Matter regarding BSE’s applicability under RTI Act sub judice before Bombay High Court (Writ Petition No. 1433 of 2007)
Regulatory Changes
No regulatory changes introduced. This is an administrative order clarifying jurisdictional limitations under the RTI Act.
Compliance Requirements
No new compliance requirements. The order reaffirms existing position that:
- Claims related to defaulter brokers are handled by stock exchanges
- Information seekers should directly contact stock exchanges for claim-related queries
- Stock exchanges are not currently subject to RTI Act obligations pending final judicial determination
Important Dates
- August 20, 2025: RTI application filed by appellant
- September 15, 2025: CPIO response provided
- October 11, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00275)
- November 4, 2025: Appeal dismissed by Appellate Authority
- Period of information sought: April 1, 2018 to March 31, 2025
Impact Assessment
Minimal market impact. This is a procedural RTI appeal order affecting a single information seeker. The order has no implications for trading, listing, or market operations. It reiterates the existing legal position that stock exchanges are not considered public authorities under the RTI Act pending final court decisions. The matter relates to investor protection fund claims against a specific broker (Raghukul Shares India Pvt. Ltd) but does not provide information about the broker’s status or any enforcement actions.
Impact Justification
Administrative RTI appeal order with no regulatory changes or market-wide implications. Clarifies procedural matter that stock exchanges and brokers are not public authorities under RTI Act per pending litigation.