Authority tells SEBI to differentiate what can be disclosed under RTI

SEBI’s appellate authority under the RTI Act has said SEBI has to determine whether information sought for can be split into what is exempt from disclosure and what is not, so that information not exempt from disclosure can be disclosed.

S. Raman, the appellate authority, gave his ruling in the case of Priyal Guliani versus SEBI, where Guliani sought copies of correspondence including file notings relating to grant of recognition to MCX-SX in 2008. She also sought a copy of the letter of approval given to start trading in currency futures.

SEBI had informed Guliani that the information sought for “was strategic in nature and contained confidential information, disclosure of which may impact the strategic decision making of the regulator, the competitive position of the regulated entities and market participants of the securities market and compromise the economic interest of the country.”

Raman said, “in light of the above, what emerges is a requirement for striking a balance between maintaining transparency in respect of regulatory policy formulation by the regulator on the one hand and ensuring compliance with the principle of confidentiality, a breach of which may cause substantial harm to the competitive position of stock exchanges, etc, contributing to such policy formulation and the regulator’s ability to obtain necessary inputs, etc, from such entities, in future, on the other hand.”

Raman observed SEBI had not informed Guliani that the information sought for was exempt from disclosure in totality and that the severability clause (breaking down the information into exempt and non-exempt) was not applicable in this case.

Hence, the appellate authority directed SEBI to examine whether the file notings sought for was exempt from disclosure or not. If SEBI determined that, information exempt from disclosure may be severed from that part of information identified as not exempt from disclosure, it could still disclose what was not exempt.

SEBI has been asked to respond to Guliani’s application within 20 days.