Description

RTI appeal by Kimsuk K. Sinha seeking information on SEBI's action against SNA Milk and Milk Products (P) Ltd and alleged stock price manipulation of SER Industries Ltd. SEBI upheld confidentiality of investigation under Section 8(1)(h) of the RTI Act.

Summary

This is an appellate order by SEBI’s Appellate Authority under the Right to Information Act, 2005, in response to Appeal No. 6750 of 2026 filed by Kimsuk K. Sinha. The appellant had sought information regarding SEBI’s actions on a complaint against SNA Milk and Milk Products (P) Ltd and alleged stock price manipulation of SER Industries Ltd. SEBI upheld the denial of information, citing exemption under Section 8(1)(h) of the RTI Act on grounds of investigation confidentiality.

Key Points

  • Appellant filed RTI application on December 12, 2025 (received December 16, 2025) seeking details of SEBI action on complaint against SNA Milk and Milk Products (P) Ltd.
  • Appellant queried whether SNA Milk’s reverse merger with SER Industries (at a ratio of 1 SNA share = 200 SER shares) was known to SEBI.
  • Appellant flagged suspected price manipulation in SER Industries, whose stock rose from ₹27.30 to over ₹700 in 52 weeks despite very low trading volumes.
  • SEBI’s CPIO responded that investigations are conducted confidentially and SEBI neither confirms nor denies the existence of any specific investigation.
  • SEBI’s CPIO treated query no. 4 (on stock appreciation) as a request for clarification, not ‘information’ under Section 2(f) of the RTI Act.
  • Appellate Authority upheld the denial, citing Section 8(1)(h) of the RTI Act, and relied on precedent from CIC in Manju Devi v CPIO, SEBI (Order dated April 29, 2025).

Regulatory Changes

No regulatory changes introduced. This order reaffirms SEBI’s established position that ongoing examination or investigation details are exempt from RTI disclosure under Section 8(1)(h) of the RTI Act.

Compliance Requirements

No new compliance requirements for market participants. This order is specific to the RTI appeal filed by the appellant and does not impose obligations on any third parties.

Important Dates

  • December 12, 2025: Original RTI application filed by appellant.
  • December 16, 2025: RTI application received by SEBI.
  • January 05, 2026: CPIO responded to the RTI application.
  • February 04, 2026: Appellant filed the first appeal.
  • February 10, 2026: Appeal received by the Office of Appellate Authority.

Impact Assessment

This order has no direct market or operational impact. It is a procedural RTI appellate decision reaffirming SEBI’s standard practice of maintaining confidentiality over its investigations and examinations. The underlying concerns raised by the appellant — alleged price manipulation in SER Industries and the reverse merger involving SNA Milk and Milk Products — remain matters under SEBI’s purview, but no public enforcement action has been disclosed. Investors in SER Industries should note the appellant’s flagged concern about the stock’s unusual price appreciation from ₹27.30 to over ₹700 in 52 weeks amid low volumes.

Impact Justification

Routine RTI appellate order upholding confidentiality of SEBI investigation; no new regulatory changes or market-wide compliance requirements introduced.