Central Information Commission
Kartik Aggarwal vs Securities And Exchange Board Of India ... on 29 December, 2020
Author: Neeraj Kumar Gupta
Bench: Neeraj Kumar Gupta
के ीय सूचना आयोग
Central Information Commission
बाबा गंगनाथ माग, मुिनरका
Baba Gangnath Marg, Munirka
नई िद ी, New Delhi - 110067
ि तीय अपील सं ा / Second Appeal No. CIC/SEBIH/A/2019/638360
Kartik Aggarwal ... अपीलकता/Appellant
VERSUS
बनाम
CPIO ... ितवादी /Respondent
Securities and Exchange Board of
India, Mumbai
Relevant dates emerging from the appeal:
RTI : 09-12-2018 FA 06-01-2019 SA : 15-04-2019
CPIO : 27-12-2018 FAO : 28-01-2019 Hearing : 21-12-2020
ORDER
1. The appellant filed an application under the Right to Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO) Securities and Exchange Board Of India, Mumbai. The appellant seeking information on five points, including, inter-alia:-
(i) Kindly specify the number of public companies registered with SEBI on which Listing obligations & disclosure requirements regulations 2015 is applicable till the month of December 2018;
(ii) Kindly specify the number of public companies which have not complied with Listing obligations & disclosure requirements regulations 2015 in the preceding 3 calendar years including current calendar year, etc.
2. As the CPIO had not provided the requested information, the appellant filed the first appeal dated 06.01.2019 requesting that the information should be provided to him. The first appellate authority was ordered on 28.01.2019 and disposed of his Page 1 of 4 first appeal. He filed a second appeal u/Section 19(3) of the RTI Act before the Commission on the ground that information has not been provided to him and requested the Commission to direct the respondent to provide complete and correct information.
Hearing:
3. The appellant attended the hearing through audio-call. The respondent, Shri Santosh Kumar Sharma, CPIO along with Ms. Promila attended the hearing through audio-call.
4. The respondent submitted their written submissions dated 14.12.2020 and the same has been taken on record.
5. The appellant submitted that the First Appellate Authority ratified the stance of the CPIO for refusal of information with regard to point number 1 & 2 of the RTI application on the ground that the information is not maintained by the SEBI in normal course of regulation of securities market. The appellant stated that the same stance was observed with regard to information in point number 5 by the CPIO and the First Appellate Authority. The appellant stated that the grounds mentioned for First Appeal clearly provides for that SEBI is the 'nodal regulatory office' for the stock exchanges, SEBI is duty bound to maintain information relating to non- compliance with SEBI regulations and that stock exchanges are duty bound to provide all information to SEBI. It was also submitted that non-maintenance of information in regular course is not a valid ground for denying information under RTI Act. The appellant stated that the information so refused holds importance in public domain for all the stakeholders.
6. The respondent submitted that vide letters dated 27.12.2018 and 28.01.2019, point-wise reply/information, as per the documents available on record has been provided to the appellant. The respondent submitted that administrative power of penalty against the company who are not complying with the LODR regulation has been delegated to stock exchange and they are taking actions as required.
Decision:
7. The Commission, after hearing the submissions of both the parties and after perusal of records, observes that it is surprising that the regulations has been framed by the respondent public authority but the violation of those regulations are not in the record of the respondent public authority. The appellant alleged that there is an element of corruption in the respondent public authority and thereby they are not Page 2 of 4 taking action against the companies who are not complying with the directions quoted in the LODR regulations. As SEBI is not making voluntary disclosure of this information within the public domain, let the matter be placed before the Chairman, SEBI as apparently larger public interest is involved in the matter.
8. On query from the Commission regarding that as to whether any such report is submitted by the Stock Exchange. On this, the respondent submitted that they have to check their records with the concerned department in this regard. This indicates that in reply to query nos. 2 to 4 a callous approach has been adopted in denying the information. The public authority is directed to check the records that as on the date of receipt of RTI application whether any records of information is available/made by the stock exchange for action taken on non-compliance of LODR regulations by the listed companies. If it already exists on record then it should be send to the appellant within a period 30 days from the date of receipt of copy of this order.
9. The matter should be brought to the notice of Chairman, SEBI that the information related to the listed companies who are not complying with the LODR regulations or action taken by stock exchanges under the delegation power by SEBI may be considered for suo-moto disclosure as it relates to larger public interest and is binding on the promoters of the company. Further, general instruction/guidelines should be made available in public domain to this effect.
10. A show cause notice is issued to the then CPIO for giving explanation as to why penalty should not be imposed on him u/s. 20(1) of the Act for wilfully obstructing the information.
11. The above directions of the Commission should be complied within a period of 30 days from the date of receipt of this order.
12. The respondent is directed to place a copy of this order before the Chairman, SEBI for appropriate action in the matter.
13. With the above observations, the appeal is disposed of.
Page 3 of 414. Copy of the decision be provided free of cost to the parties.
नीरज कुमार गु ता)
Neeraj Kumar Gupta (नीरज ता
सूचना आयु त)
Information Commissioner (स त
दनांक / Date 21.12.2020
Authenticated true copy
(अिभ मािणत स#ािपत ित)
S. C. Sharma (एस. सी. शमा),
Dy. Registrar (उप-पंजीयक),
(011-26105682)
Addresses of the parties:
1. CPIO
Securities and Exchange Board of India
RTI Cell, SEBI Bhawan, Plot No. C-4A
G-Block, Bandra-Kurla Complex
Bandra (East) Mumbai-400051
2. Kartik Aggarwal
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