Description

Appellate Authority dismisses RTI appeal regarding IPO allocation software and RTA compliance audits, ruling queries seek clarification rather than information under RTI Act.

Summary

SEBI’s Appellate Authority dismissed Appeal No. 6656 of 2026 filed by Tarun Agarwal against the CPIO’s response to an RTI application dated November 19, 2025. The appeal contested responses to queries 5-9 regarding IPO allocation software used by Registrar and Transfer Agents (RTAs), SEBI’s own allocation software, manual allocation methods, audits of RTA software, and non-compliance findings. The Appellate Authority upheld the CPIO’s position that these queries seek clarification/opinion/confirmation rather than “information” as defined under Section 2(f) of the RTI Act, 2005.

Key Points

  • Appeal filed on December 12, 2025 (Reg. No. SEBIH/A/E/25/00327) challenging CPIO’s response dated December 12, 2025
  • Queries 5-9 sought information about: RTA software standards, SEBI’s IPO allocation software, manual allocation methods, software audits, and compliance violations
  • CPIO referred appellant to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 for queries 5, 6, and 7
  • Appellate Authority ruled queries are requests for clarification/opinion/confirmation, not “information” under RTI Act
  • Decision cited precedent: Azad Singh vs. CPIO, Oriental Insurance Company Limited (March 23, 2021)
  • CPIO has no obligation under RTI Act to create, interpret, or compile information per appellant’s desires

Regulatory Changes

No regulatory changes introduced. This is an administrative decision interpreting the scope of information disclosure under the RTI Act, 2005.

Compliance Requirements

No new compliance requirements. The order affirms that CPIOs are not required to provide opinions, clarifications, or confirmations under RTI Act - only information existing on record. RTI applicants must frame queries seeking existing recorded information rather than seeking analysis or interpretation.

Important Dates

  • November 19, 2025: RTI application filed by Tarun Agarwal
  • December 12, 2025: CPIO response issued
  • December 12, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00327)
  • January 9, 2026: Appellate Authority order issued

Impact Assessment

Minimal market impact. This is a procedural RTI appeal decision that does not affect IPO allocation procedures, RTA operations, or compliance frameworks. The decision clarifies the boundaries of information disclosure under RTI Act but does not modify existing regulations governing share allotment processes under SEBI (ICDR) Regulations, 2018. No impact on market participants, issuers, or investors.

Impact Justification

Administrative RTI appeal decision with no regulatory changes or market impact. Clarifies scope of RTI Act but does not affect IPO allocation procedures or RTA compliance requirements.