Sebi refuses to disclose NSE probe reports under RTI

NEW DELHI: The Securities and Exchange Board of India (Sebi) has refused to disclose under the Right to Information (RTI) Act its inspection reports since 2013 related to the functioning of the National Stock Exchange which is mired in controversy over alleged irregularities in the functioning of the bourse’s former chiefs.

Sebi informed RTI activist Subhash Agrawal that the information sought by him pertains to its internal functioning and its disclosure may hamper decision making in its supervisory and regulatory role.

Agrawal had sought copies of Sebi’s inspection reports with respect to the National Stock Exchange (NSE) from 2013 till date.

“It was mentioned in the RTI application that the Supreme Court of India considered inspection reports prepared by the Reserve Bank of India (RBI) in respect of banks (private or public sector) under the RTI Act.” “With RBI being the regulatory body in respect of banks, Sebi being regulatory public authority in respect of the NSE is bound to provide inspection reports in respect of the NSE under provisions of the RTI Act. I had also requested for weblink, if any, having such information, and file notings on movement of this RTI application,” Agrawal said.

Sebi pointed to Section 8(1)(d) of the RTI Act and said the information sought includes commercial confidential information of other entities, the disclosure of which could harm its competitive position.

“In view of the above, the information sought is exempt under Section 8(1) (d) of the RTI Act, 2005. However, information about any enforcement action taken by Sebi, is available in the public domain on the Sebi’s website: www.sebi.gov.in under the head ‘Enforcement’,” it said.

Sebi had on February 11 had charged the NSE’s former chief executive officer (CEO) and managing director (MD) Chitra Ramkrishna and others with alleged governance lapses in the appointment of Anand Subramanian as the chief strategic advisor and his re-designation as group operating officer and advisor to the MD.

Ramkrishna had told the regulator that a formless mysterious “Yogi” was guiding her over emails in taking the decisions. The Central Bureau of Investigation (CBI) which expanded its probe in the co-location scam, after the Sebi report surfaced, has arrested both of them and told the court that the ‘Yogi’ is understood to be Subramanian who was alleged beneficiary of her decisions.

DISCLOSURE OF THE INFORMATION MAY HIT DECISION MAKING IN THE REGULATOR’S SUPERVISORY ROLE, SEBI SAID