The article argues that the Delhi High Court's decision to classify NSE as a 'public authority' under the RTI Act could have unintended consequences for market infrastructure institutions by equating regulatory oversight with government control.
It cautions that applying RTI obligations to a privately incorporated, commercially operated exchange may expose sensitive operational or market-related information, potentially affecting market integrity and competition.
The author contends that transparency obligations are intended for government bodies exercising sovereign powers, whereas exchanges like NSE, despite performing public functions, operate as regulated commercial entities.
If the judgment is upheld, the same reasoning could potentially extend to other stock exchanges, depositories, clearing corporations, and even entities regulated by RBI, IRDAI, or other statutory regulators, creating wider legal implications.
While the ruling aims to enhance transparency, the article emphasizes the need to balance public accountability with the confidentiality required for efficient functioning of financial markets.
