Description
SEBI Appellate Authority dismisses RTI appeal filed by Jai Prakash Sharma seeking reasons for denial of physical share transfers of Madhuveer Com 18 Network Ltd, Vista Pharmaceuticals Ltd, and Country Condos Ltd, ruling that grievances do not constitute information under RTI Act.
Summary
The SEBI Appellate Authority dismissed Appeal No. 6648 of 2025 filed by Jai Prakash Sharma against the CPIO’s response to his RTI application dated November 17, 2025. The appellant sought information regarding denial of physical share transfers for three companies - Madhuveer Com 18 Network Ltd, Vista Pharmaceuticals Ltd, and Country Condos Ltd - by their respective transfer agents citing SEBI notifications dated March 27, 2019 and July 2, 2025. The Authority ruled that the queries were grievances seeking clarification rather than requests for information under Section 2(f) of the RTI Act, and directed the appellant to file grievances through the SCORES platform.
Key Points
- Appeal filed against CPIO’s response dated December 2, 2025 to RTI application seeking reasons for physical share transfer denial
- Three companies involved: Madhuveer Com 18 Network Ltd (500 shares, Folio 3178), Vista Pharmaceuticals Ltd (Folio 18827), and Country Condos Ltd (Folio 646)
- Transfer agents MCS Share Transfer Agent Ltd (Ahmedabad) and Aarthi Consultants Pvt Ltd (Hyderabad) denied transfers citing SEBI notifications dated March 27, 2019 and July 2, 2025
- Appellant claimed shares were purchased through stock exchange delivery mechanism but transfer was delayed due to expired transfer deeds and closure of Guwahati Regional Stock Exchange
- Special window circular dated July 2, 2025 was valid only till January 6, 2026
- Appellate Authority ruled that queries seeking clarification on grievances do not constitute ‘information’ under Section 2(f) of RTI Act
- CPIO correctly informed that grievance resolution does not fall under RTI Act provisions
Regulatory Changes
No new regulatory changes introduced. The order clarifies existing procedures:
- Reaffirms that RTI Act provisions are for seeking information, not for grievance redressal or seeking opinions/clarifications
- Reinforces that grievances against SEBI registered intermediaries, listed companies, or registered MIIs must be filed through SCORES (SEBI Complaints Redress System) online platform
Compliance Requirements
- Investors with grievances against SEBI registered intermediaries, listed companies, or Market Infrastructure Institutions must file complaints through the SCORES online platform
- RTI applications should seek specific information that exists in recorded form, not clarifications, opinions, or grievance resolution
- Transfer agents must comply with SEBI notifications regarding physical share transfers, particularly those dated March 27, 2019 and July 2, 2025
Important Dates
- November 17, 2025: RTI application filed by appellant
- December 2, 2025: CPIO response provided; Appeal filed (Reg. No. SEBIH/A/E/25/00320)
- December 23, 2025: Appellate Authority order issued
- January 6, 2026: Validity deadline for special window circular dated July 2, 2025 (as mentioned by appellant)
Impact Assessment
Operational Impact: Minimal. This is an individual case with no systemic implications. The order provides procedural clarity that RTI applications cannot be used for grievance redressal.
Investor Impact: Individual investor case affecting share transfer for three unlisted/delisted companies. The ruling directs investors to use appropriate grievance channels (SCORES) rather than RTI for transfer-related issues.
Market Impact: None. This is a procedural RTI matter with no broader market implications.
Precedential Value: Reinforces the distinction between information requests under RTI Act and grievance redressal mechanisms, providing guidance for similar future cases where investors confuse RTI applications with complaint mechanisms.
Impact Justification
Individual RTI appeal case with no broader regulatory implications or market-wide impact; procedural matter clarifying that grievances must be filed through SCORES platform rather than RTI