Description

RTI appeal dismissed where sub-broker sought information on dispute resolution mechanism; respondent adequately provided information on discontinuation of sub-broker registration and authorized person framework.

Summary

The Appellate Authority under the RTI Act dismissed Appeal No. 6625 of 2025 filed by Sapankumar Rathi on December 11, 2025. The appellant, a sub-broker, had sought information on how to approach authorities regarding a sub-brokership dispute. The CPIO informed that sub-broker registration has been discontinued and directed the appellant to the authorized person framework under exchange regulations and SEBI Master Circular for Stock Brokers (SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/90 dated June 17, 2025). The Appellate Authority found the response adequate and dismissed the appeal.

Key Points

  • Appellant Sapankumar Rathi filed RTI application on October 04, 2025 seeking guidance on dispute resolution mechanism for sub-brokers
  • CPIO responded on October 23, 2025 clarifying that sub-broker registration as SEBI intermediary has been discontinued
  • Authorized persons are now registered with exchanges per exchange-established criteria
  • SEBI Master Circular for Stock Brokers (SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/90 dated June 17, 2025) contains provisions related to authorized persons
  • Appellant filed appeal on November 19, 2025 claiming incomplete/misleading information
  • Appellate Authority Ruchi Chojer dismissed appeal finding CPIO’s response adequate

Regulatory Changes

No new regulatory changes introduced. The order references existing framework where sub-broker registration as SEBI registered intermediary has been discontinued, with authorized persons now registered with exchanges.

Compliance Requirements

No new compliance requirements. The order clarifies that individuals previously operating as sub-brokers should refer to:

  • Exchange websites for authorized person registration criteria and guidelines
  • SEBI Master Circular for Stock Brokers (SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/90 dated June 17, 2025) for provisions related to authorized persons

Important Dates

  • October 04, 2025: RTI application filed by appellant
  • October 23, 2025: CPIO response provided
  • November 19, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00301)
  • December 11, 2025: Appeal dismissed by Appellate Authority

Impact Assessment

Minimal market impact. This is an administrative RTI appeal order that does not introduce new regulations or requirements. It provides procedural clarity on the current framework for authorized persons following discontinuation of sub-broker registration. The order confirms existing regulatory structure where authorized persons are registered with exchanges rather than directly with SEBI as intermediaries.

Impact Justification

Administrative RTI appeal order with no regulatory changes or market impact; clarifies existing framework for sub-broker/authorized person registration and dispute resolution