Supreme Court Stays CIC Order Declaring NSE a Public Authority Under RTI Act

The Supreme Court has stayed the operation of a Central Information Commission (CIC) order that had declared the National Stock Exchange (NSE) a "public authority" under the Right to Information (RTI) Act, 2005. The interim relief has been granted while the Court examines the NSE's challenge to the Delhi High Court's ruling on the issue.

Issuing notice on the NSE's appeal, a Bench of the Supreme Court directed that the CIC's order will remain stayed until further proceedings. At the heart of the dispute is whether the country's largest stock exchange falls within the definition of a "public authority" under Section 2(h) of the RTI Act, which would make it liable to provide information sought by citizens under the Act.

The case has its roots in a 2010 judgment of a Single Judge of the Delhi High Court, which held that the NSE qualifies as a public authority under the RTI Act. More recently, a Division Bench of the High Court upheld that view by dismissing the NSE's appeal and reaffirming that the exchange is subject to the RTI framework.

While delivering its judgment, the High Court observed that a stock exchange cannot operate without recognition granted under the Securities Contracts (Regulation) Act. Since this recognition is issued by the Securities and Exchange Board of India (SEBI), acting as a delegate of the Central Government, the Court held that the NSE could be considered an authority established or constituted by an order of the appropriate Government. It also noted that the exchange functions under substantial governmental control, bringing it within the ambit of the RTI Act.

Questioning these findings, the NSE approached the Supreme Court through a Special Leave Petition (SLP). It argued that it does not fall within the definition of a public authority under the RTI Act and, therefore, should not be required to comply with the Act's disclosure obligations. After considering the matter, the Supreme Court granted interim relief by staying the operation of the CIC's order while it examines the legal issues involved.

For now, the CIC's direction treating the NSE as a public authority will remain inoperative. The final determination on whether the National Stock Exchange is covered under the RTI Act will be made by the Supreme Court after hearing all parties in the case.