RTI eagle eyes may soon keep track of FII monies
Holdings of individual FIIs in the capital markets may fall under the RTI domain, allowing investors access to details on inflow of funds from FIIs.
By TNN |
NEW DELHI: Holdings of individual foreign institutional investors (FIIs) in the capital markets may fall under the right to information (RTI) domain, thereby allowing investors access to details on inflow of funds from FIIs. In such an instance, investors would get to know the investments and holdings of say, Blackstone, registered as an FII with capital market regulator SEBI.
Knowledge of the stake these global players have in Indian market can help investors judge the investment climate better. The Central Information Commission (CIC) has asked market regulator SEBI to examine if the data on individual investments by FIIs operating in the country could be revealed under the RTI Act.
Presently, SEBI reveals consolidated monthly data and trends of foreign investment inflow and outgo. Sources say although the individual investment details, which are available with the government and the regulator, are not accessible to the investors, the Parliament could be apprised of the same in case asked for.
Acting on an RTI appeal over SEBI���s denial to divulge details on yearly net investment figures by each FII during 2005, 2006 and 2007, the apex information panel has asked SEBI to consult other stakeholders like the finance ministry, the RBI and over 800 FIIs and decide on the matter afresh. SEBI has to take a call on this matter within two months.
While issuing the order, information commissioner A N Tiwari said: ���SEBI would examine the matter closely in terms of extant practices/ instructions, consult all or a section of stakeholders, examine international practices and obtain views of top functionaries in the field and the government, before formulating a response.���
The regulator would also consider whether disclosure of such details is in public interest. The RTI Act 2005 may call for disclosing information, otherwise exempted, in case the information commission feels that it is in public interest.
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While denying the information to the applicant, the regulator had invoked exemption clauses in the RTI Act which said revealing such details would harm India���s economic interests. The FIIs, who would be affected by the eventual decision, as third parties, were not heard on the ground that they were large in number. Interestingly, the regulator was not sure whether the details asked for were centrally available and was regularly made available with the government, RBI and the Foreign Investment Promotion Board.Even as the Commission had brought stock exchanges under the RTI last year, the Bombay Stock Exchange and the National Stock Exchange have challenged it before the courts. Ironically, in that case the SEBI stood against the finance ministry to argue that bourses should be brought under the transparency law.
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