Description
RTI appellate order regarding SEBI's response to queries about broker-initiated square-offs in SILVERMIC and SILVERM Futures contracts on MCX during January-February 2026.
Summary
The SEBI Appellate Authority is considering Appeal No. 6821 of 2026 filed by Santosh Kumar against the CPIO, SEBI, Mumbai. The appellant sought detailed information under the RTI Act regarding broker-initiated forced square-offs in SILVERMIC and SILVERM Futures contracts on the Multi Commodity Exchange (MCX) during January 29 to February 2, 2026. SEBI’s CPIO declined most queries, either stating the information is not maintained by SEBI in normal course or that the queries seek clarifications rather than ‘information’ as defined under Section 2(f) of the RTI Act.
Key Points
- Appellant filed RTI application dated March 09, 2026 seeking data on forced square-offs in silver commodity futures (SILVERMIC and SILVERM) on MCX
- Queries covered broker-wise retail investor counts, quantities squared off, margin requirements, investor complaints, and SEBI investigations
- SEBI CPIO responded on April 02, 2026; appellant filed this appeal the same day (Reg. No. SEBIH/A/E/26/00122)
- SEBI stated broker-wise square-off details, margin data, and exchange notifications are not maintained by SEBI in normal regulatory course
- Queries about unusual square-off patterns, investor complaints, and ongoing investigations were deemed clarification-seeking and not ‘information’ under RTI Act
- SEBI noted that investigations are conducted confidentially due to their sensitive nature
Regulatory Changes
No regulatory changes. This is an appellate proceeding under the Right to Information Act, 2005, and does not introduce any new rules or guidelines.
Compliance Requirements
No new compliance requirements for market participants. The order pertains solely to SEBI’s information disclosure obligations under the RTI Act.
Important Dates
- March 09, 2026: Original RTI application filed by appellant
- April 02, 2026: CPIO response issued and appellant filed first appeal
- Period under query: January 29, 2026 to February 2, 2026 (SILVERMIC/SILVERM Futures square-off activity on MCX)
Impact Assessment
No direct market or operational impact. The order is confined to an individual RTI dispute and does not affect trading rules, margin frameworks, or broker obligations. It does, however, reflect investor concerns about transparency around forced square-offs during periods of elevated margin pressure in silver commodity futures, which may be of broader informational interest to MCX participants and commodity derivatives traders.
Impact Justification
Routine RTI appellate proceeding; no new regulatory changes or market-wide compliance requirements. SEBI upheld its position that the requested data is not maintained in normal course or constitutes clarification-seeking queries.