Information On SEBI's Internal Probe Into Alleged Insider Trading Exempted From Disclosure Under RTI Act: Delhi High Court
The Delhi High Court has held that information pertaining to internal investigation being conducted by the Securities and Exchange Board of India (SEBI) is exempt from disclosure under the Right to Information Act, 2005.
A division bench of Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela thus upheld a single bench order declining to interfere with Chief Public Information Officer's order denying information to the Appellant on her complaint.
The Appellant had filed a complaint with SEBI alleging that a major chunk of shares in the Respondent-company were allocated to related parties.
SEBI had then investigated the matter and found that the data did not corroborate with the allegations in the complaint. With respect to the allegation of insider trading, the complaint was forwarded to the concerned division for their information and necessary action.
The Appellant had sought information with respect to this internal probe.
The statutory authorities had denied the information stating that its disclosure may impede the investigation process. Further, it may also affect evidence collection and result in unnecessary harm to third parties.
Agreeing with the authorities, the High Court said,
“In our opinion, these reasons cumulatively are sufficient not to disclose the information sought by the appellant…the information sought is exempted under Section 8(1)(h) of the RTI Act, 2005.”
As such, it dismissed the appeal.
Appearance: For the Appellant : Mr. Raghavendra Mohan Bajaj, Advocate. For the Respondents : Mr. Venugopal, Sr. Adv. with Mr. Ashish Aggarwal, Mr. Rahul Malik, Ms. Shivangi Shokeen, Ms. Lisha Arora, Mr. Himanshu Singh, Advocates for SEBI.
Case title: Srishti Rustagi v. SEBI
Case no.: LPA 306/2025