The SEBI appellate authority ruled that Action Taken Reports and file notings on third-party complaints are exempt from disclosure under the RTI Act to protect market integrity and fiduciary confidentiality.
SEBI Withholds Complaint Records to Prevent Market Speculation
The Securities and Exchange Board of India (SEBI) has reaffirmed its stance that internal documents such as Action Taken Reports (ATRs) and file notings related to third-party complaints are exempt from disclosure under the Right to Information (RTI) Act. The decision was upheld by SEBI’s appellate authority, citing potential harm to market stability and investor confidence.
The appeal arose from a RTI request seeking disclosure of SEBI’s response to informal complaints against market participants. The authority held that premature release of such information could lead to unwarranted speculation, affect ongoing investigations, and breach confidentiality owed to complainants and regulated entities.
Disclosure may adversely impact the integrity of the regulatory process and deter future complaints,the order noted.
This ruling underscores SEBI’s discretion in safeguarding sensitive regulatory information. Corporate lawyers and compliance officers should anticipate limited transparency in informal enforcement channels. The precedent strengthens SEBI’s position in resisting disclosure of preliminary investigative records, aligning with broader judicial trends on regulatory confidentiality.
