Regulations
Appellate Authority asks SEBI to disclose details on grant of licence for MCX-SX

The Appellate Authority at SEBI ruled the process relating to grant of recognition of MCX-SX in 2008 has been completed and hence details on the process can be disclosed

The Appellate Authority under the Right to Information (RTI) Act at Securities and Exchange Board of India (SEBI) has asked the market regulator to disclose details on process related to grant of recognition to MCX Stock Exchange (MCX-SX).

 

Hearing an appeal against the market regulator’s denial of information sought through RTI Act, the Appellate Authority has ruled the process relating to grant of recognition of MCX-SX in 2008 has been completed.

 

"In view of the same, I note that the decision-making process that contributed towards such grant of recognition cannot be argued as totally exempt from disclosure under the provisions of the RTI Act, though a part of it may qualify as such," the Appellate Authority said in its order.

 

"In light of the above, what emerges is a requirement for striking a balance between maintaining transparency in respect of regulatory policy formulation by the regulator on the one hand and ensuring compliance with the principle of confidentiality... on the other hand," the order said.

 

It, however, observed that any breach of the principle of confidentially may cause substantial harm to the competitive position of stock exchanges and therefore adversely impact the regulator’s ability to obtain necessary input from such entities in future.

 

"Accordingly, the respondent may examine the information relating to file notings of recognition of MCX in 2008, to determine which information is exempt from disclosure.

 

"Upon such determination, information exempt from disclosure may be severed from that part of information that may be identified as disclosable," the Appellate Authority said.

 

It asked SEBI to reconsider the appellant’s application and provide an appropriate response to the appellant within 20 working days from the date of receipt of this order, which was passed on 16th January.

 

In case SEBI decides to withhold certain information from disclosure, which in his opinion falls within the exemptions provided under the RTI Act, the regulator can pass an appropriate order, it added.

 

The appellant had filed an RTI application in November last year with SEBI, seeking copies of correspondence including file notings on approval to stock exchange licence granted to MCX for MCX-SX for currency futures in 2008.

 

The appellant had also sought a copy of letter of approval to MCX for MCX-SX.

 

However, SEBI in its response dated 3 December 2013, informed the appellant that the information pertaining to related file notings of recognition of MCX-SX in 2008 "was strategic in nature and contained confidential information".

User

ML sectoral trends

Shares of plastics companies surged 7%; shares of software & IT services companies advanced...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Urban Inflation

Inflation in urban areas fell to 9.11% in December 2013 from 10.53% in November 2013. The...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)