The information regarding internal investigation related to insider trading by the Securities and Exchange Board of India is exempt under Section 8(1)(h) of the Right to Information Act, 2005, the Delhi High Court held on Thursday.
While dismissing complainant Srishti Rustagi's petition seeking information of the SEBI's internal probe on allegations of insider trading in a case related to WABCO India, a Division Bench comprising Chief Justice Devender Kumar Upadhyay and Tushar Rao Gedela said that the statutory authorities have given reasons as to why and under what circumstances the disclosure of such information may impede the investigation process.
Further, these authorities have said that such disclosure may not only affect confidentiality of investigation but may also affect evidence collection and result in unnecessary harm to third parties, the order noted, adding that these reasons cumulatively were sufficient not to disclose the information sought by Rustagi.
The court noted that the complainant had only sought status of her complaint and not the nature of investigations which, according to the statutory authorities, was already on the SCORES portal.
“…part from the status of the complaint, the nature of investigations even if sought by the appellant stands exempted in view of the aforesaid background facts and thus cannot be disclosed,” the short order stated.
Rustagi had filed a complaint in 2021 seeking a detailed and thorough probe in the matter of offer for sale of equity shares of WABCO. She had alleged that a major chunk of shares under offer for sale was allocated to related parties.
Thereafter, through an email by SEBI SCORES, Rustagi was informed about part disposal of her complaint and also forwarding of the complaint with regard to allegations of insider trading to the concerned department for necessary action. While she had sent various emails to SEBI seeking status regarding the investigation, with respect to her complaint, the market regulator had not responded. Consequently, the complainant filed an application under the RTI to seek information.
While dismissing complainant Srishti Rustagi's petition seeking information of the SEBI's internal probe on allegations of insider trading in a case related to WABCO India, a Division Bench comprising Chief Justice Devender Kumar Upadhyay and Tushar Rao Gedela said that the statutory authorities have given reasons as to why and under what circumstances the disclosure of such information may impede the investigation process.
Further, these authorities have said that such disclosure may not only affect confidentiality of investigation but may also affect evidence collection and result in unnecessary harm to third parties, the order noted, adding that these reasons cumulatively were sufficient not to disclose the information sought by Rustagi.
The court noted that the complainant had only sought status of her complaint and not the nature of investigations which, according to the statutory authorities, was already on the SCORES portal.
“…part from the status of the complaint, the nature of investigations even if sought by the appellant stands exempted in view of the aforesaid background facts and thus cannot be disclosed,” the short order stated.
Rustagi had filed a complaint in 2021 seeking a detailed and thorough probe in the matter of offer for sale of equity shares of WABCO. She had alleged that a major chunk of shares under offer for sale was allocated to related parties.
Thereafter, through an email by SEBI SCORES, Rustagi was informed about part disposal of her complaint and also forwarding of the complaint with regard to allegations of insider trading to the concerned department for necessary action. While she had sent various emails to SEBI seeking status regarding the investigation, with respect to her complaint, the market regulator had not responded. Consequently, the complainant filed an application under the RTI to seek information.
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