The Economic Times: New Delhi: Friday, 19 September 2025.
The Delhi High Court has ruled that SEBI is not obligated to disclose details of its internal probes into insider trading, citing exemptions under the RTI Act. This decision came as the court dismissed a petition seeking information on SEBI's investigation into alleged insider trading related to WABCO India.
The Securities and
Exchange Board of India is not required to disclose information on its internal
probe into insider trading, as such information is exempt under the Right to
Information Act, 2005, the Delhi High Court ruled on Thursday.
Dismissing complainant Srishti Rustagi's petition seeking information of Sebi's internal probe on allegations of insider trading in a case related to WABCO India, the court said statutory authorities have given reasons as to why and under what circumstances the disclosure of such information may impede the investigation process.
These authorities have said that such disclosure may not only affect confidentiality of investigation but may also affect evidence collection and result in unnecessary harm to third parties, a division bench comprising Chief Justice Devender Kumar Upadhyay and Justice Tushar Rao Gedela said, adding that these reasons cumulatively were sufficient not to disclose the information sought by Rustagi. The court noted that the complainant had only sought status of her complaint and not the nature of investigations which, according to the statutory authorities, was already on the SCORES portal.
"Apart from the status of the complaint, the nature of investigations, even if sought by the appellant, stands exempted in view of the aforesaid background facts and thus cannot be disclosed," the short order stated.
Rustagi filed a 2021 complaint seeking a detailed probe into WABCO's offer-for-sale, alleging major allocations to related parties; Sebi partly disposed it, forwarding insider trading allegations for action. While she had sent various emails to Sebi seeking status regarding the investigation with respect to her complaint, the market regulator had not responded. Consequently, the complainant filed an application under the RTI to seek information.
The Delhi High Court has ruled that SEBI is not obligated to disclose details of its internal probes into insider trading, citing exemptions under the RTI Act. This decision came as the court dismissed a petition seeking information on SEBI's investigation into alleged insider trading related to WABCO India.
Dismissing complainant Srishti Rustagi's petition seeking information of Sebi's internal probe on allegations of insider trading in a case related to WABCO India, the court said statutory authorities have given reasons as to why and under what circumstances the disclosure of such information may impede the investigation process.
These authorities have said that such disclosure may not only affect confidentiality of investigation but may also affect evidence collection and result in unnecessary harm to third parties, a division bench comprising Chief Justice Devender Kumar Upadhyay and Justice Tushar Rao Gedela said, adding that these reasons cumulatively were sufficient not to disclose the information sought by Rustagi. The court noted that the complainant had only sought status of her complaint and not the nature of investigations which, according to the statutory authorities, was already on the SCORES portal.
"Apart from the status of the complaint, the nature of investigations, even if sought by the appellant, stands exempted in view of the aforesaid background facts and thus cannot be disclosed," the short order stated.
Rustagi filed a 2021 complaint seeking a detailed probe into WABCO's offer-for-sale, alleging major allocations to related parties; Sebi partly disposed it, forwarding insider trading allegations for action. While she had sent various emails to Sebi seeking status regarding the investigation with respect to her complaint, the market regulator had not responded. Consequently, the complainant filed an application under the RTI to seek information.
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