Bombay HC Quashes CIC Order Directing Sebi to Collect Info From BSE for RTI Applicants

The Bombay High Court in Mumbai has quashed and set aside orders issued by the Central Information Commission (CIC) that directed the Securities and Exchange Board of India (Sebi) to collect information from the Bombay Stock Exchange (BSE) and furnish it to Right to Information (RTI) applicants.

A division bench comprising Justice Manish Pitale and Justice Shreeram Shirsat on Tuesday allowed nine petitions jointly challenging the directives, which were filed by Sebi and the BSE.

The Central Information Commission had previously held that under the provisions of the RTI Act, the market regulator was under an obligation not only to disclose information already available with it, but also to proactively collect or obtain such records from third parties, including the BSE, to provide to applicants.

Challenging the commission's directive before the High Court, advocates representing Sebi and the BSE argued that as a public authority and market regulator, Sebi is bound to provide only the information that is already available within its possession and records. They contended that Sebi cannot be placed under a statutory obligation to collect materials from third parties such as the BSE to satisfy RTI queries.

The High Court bench concurred with the arguments, observing that the statutory definition of 'information' under the RTI Act requires a public body to furnish information held by it to an applicant relating to any private body, subject to other provisions including specific exemptions from disclosure.

The judges emphasised that the information sought must be held by the concerned public authority at that point in time when the request for such information is made.

Addressing the scope of Sebi's obligations, the court ruled that the provisions of the RTI Act do not indicate that a public authority like Sebi is required or obligated to obtain information from third parties simply to satisfy persons submitting applications for information.