Central Information Commission Judgements

Mr.Deepak Kumar vs Securities And Exchange Board Of … on 24 November, 2010

Central Information Commission
Mr.Deepak Kumar vs Securities And Exchange Board Of … on 24 November, 2010
                   CENTRAL INFORMATION COMMISSION
                                           .....

F.No.CIC/AT/A/2010/000663
Dated, the 24  November, 2010.

                                                                   th




 Appellant          : Shri Deepak Kumar 


 Respondent         : Securities and Exchange Board of India (SEBI)
 s

This   matter   came   up   for   hearing   on   22.10.2010   partly   through 
videoconference   (VC).     Appellant   was   present   at   NIC   VC   facility   at 
Sangarur, while the respondents   represented by Ms.Jeny John, DGM 
and Ms.Jyoti Rathod, Manager  were present at Commission’s office at 
New Delhi.

2. Appellant’s RTI­application dated 16.10.2009 related to an enquiry, 
which, he believed, was conducted by SEBI on the basis of appellant’s 
representation dated 08.08.2009 (reminder dated 25.09.2009) against a 
third­party, viz. M/s.Fortune Equity Brokers (India) Ltd.

3. It   is   obvious   that   appellant   has   first   attempted   to   invoke   the 
grievance­redressal   process   of   the   SEBI,   but   received   no   reply. 
Thereafter, he chose to file his petition under the RTI Act.

4. He is one of the several who now reached the Commission under 
the  RTI  Act  having  failed  to receive  a response  from  SEBI  when  they 
invoke the grievance­redressal mechanism set up by SEBI.

5. It   is   time   that   SEBI   gives   a   thought   to   why   so   many   of   such 
grievance­redressal   petitions,   which   ought   to   be   addressed   through 
SEBI’s   own   mechanism   set   up   for   the   purpose,   are   reaching   the 

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Commission   in   the   form   of   second­appeals   under   the   RTI   Act.     It   is 
noteworthy  that while such applicants  received no response from SEBI 
when   they   invoked   the   grievance­redressal   setup,   the   routine   reply   of 
SEBI to petitions under the RTI Act is that grievance­redressal through 
RTI Act is not possible or permissible.  The applicant is, therefore, twice 
beaten    first,   when   he   receives   no   response   when   he   invokes   the 
grievance­redressal  setup  of SEBI  and second,  when  he comes  under 
the RTI Act he is told that grievance could not be redressed through RTI 
laws.     Used   in   this   sense,   RTI   becomes   the   reason   for   blocking   of 
information to the petitioners such as this.

6. During the hearing, all that the appellant was interested in knowing 
was why SEBI never took any action when he filed a complaint against a 
third­party, viz. M/s.Fortune Equity Brokers (India) Ltd under SEBI’s own 
grievance­redressal mechanism.

7. Respondents   pointed   out   that   on   16.04.2010   appellant   was 
informed  about  the   status   of  his   grievance­redressal,   after  he   filed   his 
first­appeal.

8. Appellant pointed out that the reply he received from SEBI after the 
Appellate   Authority’s   intervention   was   unconnected   to   what   he   had 
sought through his earlier complaint­petition filed before SEBI.  While the 
action relating to his complaint lay with SEBI, he was now being informed 
that an arbitration proceeding was already  on in the matter brought up 
through   his  complaint.     He  pointed   out  that,   but  for  his   filing   the   RTI­
application, he would not have been provided even this information.  So 
much for the efficacy of SEBI’s investor­grievance­settlement mechanism!

9. While SEBI would be theoretically correct in saying that redressal 
of grievances could not be sought through invocation of RTI­proceeding, 
the appellant, nevertheless is entitled to receive from them a firm reply 
about   the   grievance   he   has   against   a   third­party,   who   is   under   the 

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regulatory control of SEBI.  I leave this to the better judgement of SEBI’s 
top management.

10. For  the  purposes  of the  present  petition,  I allow  the appellant  to 
inspect   all   files   relating   to   his   complaint   against   the   third­party,   viz. 
M/s.Fortune  Equity  Brokers  (India) Ltd.   CPIO is directed  that, within 3 
weeks,   on   a   date   and   time   to   be   intimated   to   appellant,   he   shall   be 
allowed to inspect the above files.  He shall be allowed to take copies of 
the documents he might select.

11. Matter disposed of with these observations.

12. Copy of this direction be sent to the parties. 

( A.N. TIWARI )
CHIEF INFORMATION COMMISSIONER

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