Stock market regulator SEBI’s appellate authority for Right to Information, S. Raman, has dismissed an individual’s appeal against SEBI’s response to him on the NSE flash crash of October 5, 2012.
Tarun Jain had asked SEBI five questions which included reasons for which the trading was halted and the entity responsible for the disruption. Jain also wanted to know why the broker put erroneous orders/ trades on the exchange and the damages suffered by the investors.
He also inquired about the entity responsible for the crash and the penalties levied by SEBI on the NSE and those responsible. Finally, Jain also queried about the compensation to the affected investors.
Raman observed that the SEBI had informed Jain about the press release issued by NSE on October 5 and had also told him that it was due to erroneous orders triggered by Emkay Global Financial Services.
On questions regarding damages suffered by investors and the entity responsible for the incident, the SEBI informed Jain that the information sought for, was not available.
Raman observed that the RTI Act provided access to information free from exemptions and if the information sought was not available with the entity. Further, the RTI Act did not cast an obligation upon the public authority for any information not required to be maintained under law.
Raman also said question on compensation to investors was hypothetical in nature.