RTI Act – Delhi High Court Declares NSE a Public Authority
RTI Act – The Delhi High Court has ruled that the National Stock Exchange of India is a public authority under the Right to Information Act, bringing the country’s largest stock exchange within the scope of transparency obligations under the law.
A division bench comprising Justice C Hari Shankar and Justice Om Prakash Shukla dismissed an appeal filed by the National Stock Exchange of India against an earlier order that had reached the same conclusion in 2010. The court upheld the finding of former Delhi High Court judge Justice Sanjiv Khanna, who had held that the exchange falls within the definition of a public authority under Section 2(h) of the RTI Act.
Exchange Challenged Earlier Transparency Finding
The NSE had argued that it was a private corporate body incorporated under the Companies Act, 1956, and was not owned, controlled or substantially financed by the government. Its counsel submitted that the exchange was only recognised and regulated by the Securities and Exchange Board of India, and that regulatory oversight alone could not make it a public authority.
The exchange also warned that treating regulatory supervision as government control could extend RTI obligations to many other private entities operating under statutory regulators. According to the NSE, such an interpretation would blur the distinction between private companies and government-controlled institutions.
Court Focuses on Public Functions of Stock Exchange
Rejecting the argument, the High Court said the NSE’s legal position could not be judged only by its incorporation as a private company. The bench observed that its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956, gave it a role that went beyond ordinary private business activity.
The court noted that a recognised stock exchange performs important public functions in the financial market. It said the recognition granted initially by the Central government, with the authority later delegated to SEBI, gave the NSE the character of an institution exercising functions connected with public governance.
The judges agreed with the earlier conclusion that the NSE was controlled by the appropriate government for the purpose of the RTI Act. The bench said there was no reason to interfere with the single judge’s decision.
Appeal Dismissed Without Costs
In its order, the division bench affirmed the 2010 ruling and dismissed the appeal. The court did not impose any costs on the National Stock Exchange.
The decision is significant for investors, market participants and citizens seeking information related to the functioning of the exchange. With the ruling, the NSE will be required to respond to RTI applications in accordance with the provisions of the transparency law, subject to exemptions available under the Act.
Salman Khan Film Plea Listed for July 6
In another matter, the Delhi High Court listed actor Salman Khan’s plea for hearing on July 6. Khan has sought a stay on the release of the film Kala Hiran: The Battle for Legal.
Justice Jyoti Singh postponed the hearing after noting that the film had not yet been submitted to the Central Board of Film Certification for certification. The court also recorded that Khan’s rejoinder was not available on the judicial record at the time of the hearing.
Delhi Court Acquits Accused in 2022 Murder Case
A Delhi court has acquitted a man charged in a 2022 murder case from Govind Puri, holding that the prosecution had failed to establish the allegation beyond reasonable doubt.
The court found that key prosecution witnesses gave inconsistent accounts of the incident. It also noted that the forensic material presented during the trial did not establish a direct connection between the accused and the alleged crime.
According to the court, the case contained serious gaps that weakened the prosecution’s version. The accused was therefore acquitted of the murder charge.