NSE is a public authority under RTI Act, rules Delhi High Court

The Delhi High Court on Wednesday held that the National Stock Exchange (NSE) is a "public authority" under the Right to Information (RTI) Act, making India's largest stock exchange subject to the transparency law, Bar and Bench reported.

According to Bar and Bench, a Division Bench of Justices C Hari Shankar and Om Prakash Shukla upheld a 2010 judgment of then Delhi High Court judge Sanjiv Khanna, dismissing the NSE's appeal against the ruling.

Bar and Bench reported that Justice Khanna had held that while the NSE was incorporated as a private company under the Companies Act, its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 transformed it into an authority performing public functions.


The judgment had further held that the recognition granted by the Central government, later delegated to Securities and Exchange Board of India, effectively constituted the NSE as an institution of self-government under Section 2(h) of the RTI Act. Justice Khanna had also ruled that the NSE is a body controlled by the Central government, Bar and Bench said.

The NSE had challenged the ruling before a Division Bench, arguing that since it was incorporated under the Companies Act, 1956, it remained a private corporate entity and not a government body. Bar and Bench reported that the Division Bench had stayed the single-judge verdict on May 4, 2010.

In its final judgment delivered on Wednesday, the Division Bench upheld the 2010 ruling, bringing the NSE within the ambit of the RTI Act, according to Bar and Bench.

Bar and Bench reported that Senior Advocate Jayant Mehta, along with a team of advocates, appeared for the NSE. The RTI applicant was represented by advocates led by Ashish Aggarwal and OP Faizi, while Central government standing counsel BS Shukla and Dashmesh Tripathi appeared for the Union government.