The Delhi High Court has affirmed that the National Stock Exchange (NSE) of India falls under the purview of the Right to Information Act (RTI Act), classifying it as a public authority. This decision was delivered by a Division Bench comprising Justices C Hari Shankar and Om Prakash Shukla, who upheld a previous ruling from 2010 by Justice Sanjiv Khanna. The earlier judgement was contested by the NSE, but the appeal was dismissed, reinforcing the original decision.
NSE as a Public Authority
Justice Sanjiv Khanna had earlier determined that although the NSE was initially formed under the Companies Act as a private company, its designation as a stock exchange under the Securities Contracts (Regulation) Act, 1956, elevated it to a body executing public functions. He noted that the Central Government’s recognition, later delegated to the Securities and Exchange Board of India (SEBI), effectively rendered the NSE a self-governing institution under Section 2(h) of the RTI Act. The judgement further posited that the NSE operates under the control of the Central government.
Legal Proceedings and Arguments
The NSE’s appeal hinged on the argument that its incorporation under the Companies Act, 1956, classified it as a private corporate entity rather than a public or governmental body. However, the Division Bench, after staying the initial judgement since May 4, 2010, ultimately upheld the decision, reaffirming the NSE’s obligation to comply with the RTI Act.
Senior Advocate Jayant Mehta, along with a team of advocates including Pranav Sarthi, Prachi Dhingra, Ishan Agrawal, Gandharv Garg, Jasleen Oberoi, Anshit Aggarwal, Mansvini Jain, and Udit Bajpai, represented the NSE in court. The RTI applicant’s legal representation comprised advocates Ashish Aggarwal, OP Faizi, Anand Aggarwal, Darshana Aggarwal, Nishtha Verma, Lisha Arora, Tanya Jain, Himanshu Singh, Ishita, and Anjali. The Union of India was represented by CGSC BS Shukla and Dashmesh Tripathi.
