Business
Standard: New Delhi: Monday, 07 September 2015.
The equity
markets regulator was left red-faced before the central information watchdog
after a complainant produced a letter whose existence had been denied by the
former.
The Central
Information Commission (CIC) has warned the Securities and Exchange Board of
India (Sebi) for giving false and misleading information to a query under the
Right to Information (RTI) law.
Thane-based
Ramsagar Yadav had filed an RTI application with Sebi in July 2014. Yadav
requested information on three points. "(a) name of the official of Sdbi
who had requested R K Padmanabhan, then chief vigilance officer, Sebi, to issue
a vigilance clearance for Prashant Saran for his subsequent appointment as
wholetime member in 2012; (b) designation…(of this official); and (c) copy of
the forwarding letter of chairman, Sebi or of any officer of Sebi forwarding
the application ofi Prashant Saran for appointment as wholetime member in
2012."
In August
2014, the chief public information officer (CPIO) of Sebi declined to give
information about the first two points, saying the name and designation of the
official was internal to their working, not of public interest or related to
public activity. On the third point, of the copy of the letter, the CPIO said
such a letter was not available with Sebi.
Dissatisfied,
Yadav complained to the Commission against Sebi "on the grounds of
providing incomplete and misleading information." In an order on July 23,
information commissioner Manjula Parasher said, "The Commission holds that
there is merit in the contention put forth by the complainant… CPIO is warned
to be careful and advised to ensure that correct information is provided to RTI
applicants in future."
The order
said the complainant enclosed a copy of letter No.OHC/EA/6552/2012 dated
19.03.2012, forwarding the application of Saran for appointment as WTM in 2012.
The letter was issued by the EA (executive assistant) to chairman, Sebi.
"On the
contrary, the CPIO informed the complainant on point (c) that the information
was not available with the concerned department of Sebi." It is not clear
how the complainant acquired the internal letter. According to the CPIO, this
point (c) of Yadav's RTI application was forwarded to Sebi's HR (human
resources) department for comments, who stated they did not have information in
this matter.
Recently,
Sebi is said to have moved the courts to ensure that no ex parte order (issued
without first hearing it) was passed in the matter of Saran's appointment. It
has filed caveats in relevant courts, according to lawyers familiar with the
development.
Business
Standard sent mails on August 13 and September 3 to the Sebi spokesperson,
seeking comments on the matters relating to Saran's appointment and the CIC
order. The mails did not elicit any response.
Saran's
appointment to the post for a second term had become controversial, as it
coincided with a much-disputed order in the Bank of Rajasthan case in March
2012. Minority shareholders have alleged irregularities in an order passed by
Saran against the erstwhile promoters of Bank of Rajasthan and have moved
various for a, such as the Central Vigilance Commission and the Bombay High
Court.
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