Information regarding SCN by SEBI - CIC: Information was held in fiduciary capacity and also included information which is commercially confidential in nature; the disclosure may have impeded the process of investigation/ prosecution of offenders

Information Sought:

The appellant has sought the following information with reference to Show Cause Notice (SCN) dated 31/08/2021 issued by Adjudicating Officer, SEBI in the matter of dealings in liquid Stock Options at BSE:

1. Provide the investigation report along with Annexures referred thereto as mentioned in Para 3 of the Show Cause Notice dated 31/08/2021.

2. Provide the complete market order log file executed in the contracts of CESC on 04/05/2015.

3. Provide the complete trade log file executed in the contracts of CESC on 04/05/2015.

4. And other related information.

Grounds for filing Second Appeal:

The CPIO did not provide the desired information.

Submissions made by Appellant and Respondent during Hearing:

The appellant in her second appeal had submitted that she was not satisfied with the reply of the CPIO on all the points mentioned in her RTI application. She had requested the Commission to direct the CPIO to provide complete and accurate information on all the queries. She however failed to appear before the Commission despite due service of the notice of hearing delivered to her on 27.01.2023 vide speed post no. ED72348841IN.

The CPIO reiterated that the contents of the written submissions dated 01.02.2023 which was also sent to the appellant through email. He submitted that the disclosable information as per records has been given to the appellant. He added that the matter apropos the illiquid stock options between the appellant and respondent authority which was also the subject matter of the RTI under reference stood settled on 07.11.2022.

Observations:

Keeping in view the facts of the case, the Commission observed that the information sought in queries no. 1-4 and 6 was held by the respondent authority in fiduciary capacity and also included information which is commercially confidential in nature. As per the submissions of the CPIO, the desired documents submitted by the entities and individuals against whom the investigation is conducted by the respondent authority as a regulator is exempt under Sections 8(1) (d) & 8(1)(e) Notwithstanding anything contained in this Act, there shall be no obligation to give any citizen, information available to a person in his fiduciary relationship, unless the competent authority is satisfied that the larger public interest warrants the disclosure of such information; of RTI Act, 2005. The CPIO has sufficiently explained the reasons for denial of information vide written submissions dated 01.02.2023, therefore, the denial is proper.

The Commission noted that the reply has been given on queries no. 5, 7 and 10. No deficiency is found in the reply to these points.

The Commission also accepted the submissions advanced by the CPIO qua queries 8, 10 and 11 that since the proceedings were on-going, the disclosure of any information at that juncture may have impeded the process of investigation/ prosecution of offenders. Therefore, the denial u/s 8 (1) (h) of the RTI Act, 2005 was upheld.

As per the submissions of the CPIO, the settlement took place between the parties qua illiquid stock option in November 2022. The Commission opined that it was evident from the case records that the appellant’s queries were attended to at length by the respondent. Therefore, no further intervention of the Commission was warranted in the instant matter.

Decision:

For the reasons recorded above, the Commission opined that no case is made out by the appellant for grant of relief as per the provisions of the RTI Act, 2005.

The appeal, therefore, stands disposed of accordingly.

Vanaja N. Sarna

Information Commissioner

Citation: Deepti Maheswari v. Securities and Exchange Board of India (SEBI), File no.: - CIC/SEBIH/A/2022/119085, Date of Decision : 09/02/2023