Description

SEBI Appellate Authority upholds denial of RTI application seeking internal report submitted to SAT, citing fiduciary capacity and strategic confidentiality exemptions under Section 8(1)(a) and 8(1)(e) of RTI Act.

Summary

The SEBI Appellate Authority dismissed Appeal No. 6652 of 2026 filed by Mohan Kumar Mittal against the denial of his RTI application dated November 09, 2025. The appellant had sought a copy of an internal report submitted by SEBI that was referenced in paragraph 9 of a Securities Appellate Tribunal (SAT) order dated October 30, 2025. The Appellate Authority upheld the CPIO’s decision to deny the information under Section 8(1)(a) and 8(1)(e) of the RTI Act, 2005, citing fiduciary relationship and strategic confidentiality concerns.

Key Points

  • RTI application filed on November 09, 2025, seeking internal report mentioned in SAT order dated October 30, 2025
  • CPIO denied the request on December 08, 2025, citing exemptions under Section 8(1)(a) and 8(1)(e) of RTI Act
  • Appeal filed on December 10, 2025 (Reg. No. SEBIH/A/E/25/00323)
  • Appellate Authority confirmed that internal reports are regulatory inputs received in fiduciary capacity from stock exchanges
  • Information deemed highly confidential as disclosure could affect strategic decision-making of the regulator
  • Authority cited Supreme Court precedent in Institute of Chartered Accountants of India vs. Shaunak H. Satya (Civil Appeal No. 7571 of 2011)
  • Also cited Central Information Commission order in Mr. Ashok Kumar Rajak vs. CPIO, SEBI (December 21, 2021)

Regulatory Changes

No regulatory changes introduced. This is an administrative order clarifying the application of RTI Act exemptions to SEBI’s internal regulatory documents and information received from stock exchanges in fiduciary capacity.

Compliance Requirements

No specific compliance requirements for market participants. The order establishes that:

  • Internal reports and regulatory inputs received by SEBI from stock exchanges are treated as confidential
  • Such information is exempt from disclosure under RTI Act due to fiduciary relationship
  • Information that may expose SEBI’s contemplated actions or strategic decision-making remains protected

Important Dates

  • November 09, 2025: RTI application filed by Mohan Kumar Mittal
  • October 30, 2025: SAT order referenced in RTI application
  • December 08, 2025: CPIO response denying RTI application
  • December 10, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00323)
  • January 08, 2026: Appellate Authority order dismissing appeal

Impact Assessment

Market Impact: Nil. This is an administrative matter relating to information disclosure under RTI Act with no direct market implications.

Legal Precedent: The order reinforces SEBI’s position that regulatory inputs and internal reports received from stock exchanges in fiduciary capacity are exempt from RTI disclosure. This protects the confidentiality of regulatory processes and strategic decision-making.

Transparency Considerations: While maintaining regulatory confidentiality, the order demonstrates SEBI’s adherence to established legal framework under RTI Act and reliance on judicial precedents from the Supreme Court and Central Information Commission.

Regulatory Process: The decision supports SEBI’s ability to receive sensitive information from market infrastructure institutions without concerns about public disclosure, which is essential for effective regulatory oversight.

Impact Justification

Administrative order on RTI appeal with no market-wide implications; establishes precedent for non-disclosure of regulatory inputs received in fiduciary capacity from stock exchanges