Information Commissioner lambasts SEBI for providing misleading information under RTI Act

The order was issued in connection with an appeal filed seeking information about all communication received by the market regulator from the capital markets division of the finance ministry

MS Sahoo, whole-time member of the Securities and Exchange Board of India (SEBI) has been issued a show-cause notice by the Central Information Commission asking him to show cause as to why an appellant should not be paid Rs25,000 as compensation for the detriment caused to her on account of the perfunctory manner in which her Right to Information (RTI) application and appeal was heard and disposed of.
 
Information Commissioner AN Tiwari issued the order in connection with an appeal filed by Seema Kashyap to SEBI seeking information about all communication received by the market regulator from the capital markets division of the finance ministry on norms for approval of new stock exchanges, currency derivatives, SME exchange, interest-rate derivatives, corporate bond markets and ownership guidelines for stock exchanges.
 
Ms Kashyap received a reply from the Central Public Information Officer (CPIO). However, not satisfied with the reply, she then moved the Appellate Authority. The Authority rejected her plea that the information disclosed had no relation to what had been requested. Ms Kashyap then approached the Central Information Commission claiming that what was supplied by SEBI by way of information was "nothing more than a bunch of irrelevant letters and news items having no relation to the information sought." During the hearing, Ms Kashyap pointed out that rather than provide her the particular information she sought, the CPIO went on a tangent giving out a plethora of entirely unrelated information and surprisingly, the Appellate Authority approved the CPIO's action.
 
In an order, the Information Commissioner said, "I find that the disclosed information was at variance with what the appellant had requested. The focus of the CPIO and the Appellate Authority ought to have been on the 'communications' of a certain variety as received by SEBI from the government of India and not material on the issues contained in the points which the appellant had listed. I wonder how such elementary aspects of the appellant's RTI query escaped the notice of both the CPIO and the Appellate Authority. Prima facie, there seems to be an attempt to somehow fob off the appellant with some vague information rather than give to her what she had really demanded. If SEBI had received no communication from the government of India of the type the appellant had mentioned in her RTI application, a proper response to that effect would have been entirely in order. Unfortunately, that was not to be."
 
The Information Commissioner directed the CPIO to provide precise information sought by Ms Kashyap pertaining to her RTI queries within two weeks. The Commission also issued notices to the CPIO as to why proceedings under Section 20 of the RTI Act should not be drawn up against him for providing false and misleading information to the appellant.
 
While the order was issued some time ago, it has been put in the public domain only recently. This is probably the first time that a regulator has been threatened with a fine for not providing proper information to a citizen under the RTI Act.

Interestingly, under the previous chairman, SEBI used to take pride in its claim that it answered all RTI queries. However, the regulator now seems to share the same attitude at the two leading bourses - the National Stock Exchange and the Bombay Stock Exchange - who have both gone to court claiming that they should not be subject to the RTI Act.

Meanwhile, SEBI had filed a writ petition against the CIC order in the Bombay High Court. The HC, while admitting the petition sent a notice to the CIC, returnable by 26th July and said, "...till then there will be ad interim order in terms of prayer clause".

User

COMMENTS

Santhana

6 years ago

If SEBI, NSE and BSE have nothing to hide, why they are claiming exemption from RTI? The more they shirk their responsibility to share the information in the public, more will be curious to know what they are trying to brush under the carpet.

jk

6 years ago

The regulator has never tried to be transparent to public through-out tenure of Mr Bhave-though it is fully dependent on public participation-is SEBI a defence or army organisation whose revelations could threat country's defence-this is gross case of dictatorial attitude of this organisation-if this condition prevels for longer-people will soon loos faith in all such govermental bodies which are directly related to public participation-
god save this country-

Omprakash Jha

6 years ago

Dear Sir,

We have gone through your article on SEBI not providing correct information to the RTI Applicant. However this representation is not true and you may like to clarify this in your journal.

The matter is sub judice under Writ Petition (L) No-1319 of 2010 before the Hon'ble Bombay High Court and the Hon'ble High Court has granted stay against CIC order by its order dated 14/06/2010.

Thanking you.

jagdish manghnani

6 years ago

Dear Sir

This is a good issue to fight beacause if one instution gets away like this every one will take the same way

Awating an early reply from your end

Vijay Trimbak gokhale

6 years ago

Notice regarding compensation is isuued to SEBI Chairman as Head of public authority to be repeated to AA of SEBI Mr. Sahoo. This is because the obligations of public authority are basically the obligations of the Head of the authority, who should ensure that these are met in right earnest. Refernce to public authority in guidelines issued by Ministry of Personnel is, in fcat, a reference to the head of te public authority.

Vijay Trimbak Gokhale

6 years ago

The implementation of RTI Act by SEBI desrves this and many more such orders from SEBI. SEBI management must take steps to improve the quality of replies from CPIO and orders of AA.

Railways to bar e-ticket agents from using tatkal service

Web-based ticket agents will not get access to tatkal bookings from 8am to 9am following complaints from passengers, who claim that agents corner tickets during this period

Railways have decided to bar web-based ticket agents of Indian Railway Catering & Tourism Corporation (IRCTC) from getting access to tatkal bookings from 8 am to 9 am after receiving complaints against them from people.

Passengers have been long complaining of the IRCTC website crashing as soon as the booking commences in the morning. There are complaints that agents corner tickets during this period and tatkal quota getting exhausted within minutes, said a Railway official.

"Taking such complaints into account, Railways have decided not to give the web-based agents and webservices agents of the IRCTC access to tatkal booking from 8 am to 9 am," he said, adding the decision will be implemented shortly.

The move will, however, be temporary in nature. "We want to give individuals a chance to book their ticket without any problem and if passenger complaints are addressed through this move we would implement the decision permanently," he said.

Indian Railways sees over 9.5 lakh booking across the country each day, 30% of which is done through the IRCTC portal. There are approximately about eight lakh agents under IRCTC.

According to reports, railway minister Mamata Banerjee was also believed to have asked the Railway Board to find ways to address the issue after being inundated with such complaints.

Tatkal tickets apart, IRCTC agents will also be barred from getting access to booking berths on trains on the first day of advance reservation period.

Advance reservation period opens 90 days in advance and the agents cannot have access to booking for the first hour on the opening day, the official said.

"With this move, we want to curb the menace of touting as passengers have often complained of," he said.

Railways have also launched special drive to get rid of touts resorting to irregularities at passenger reservation counters.

The problem is more pronounced during holiday seasons and festivals.
 

User

COMMENTS

SAMIKHAN

6 years ago

online pemint dwara tiket book na karne dain only cauntar only agent sarvar khud ba khud sahi ho jayega har admi com putar liye railway sid khol raha hai

Padma Balasubramani

6 years ago

I totally agree with the above decision. Regular visitors like me will surely benefit from this.
Sites like Make my trip should be banned from blocking tickets. I am a victim of one such incident with Make my trip which was costing me around Rs. 1,650/- for the journey which i did not take.

Hope the govt will implement it permanently.
regards
Padma Balasubramani

Vaihav

6 years ago

Completely agreed Rakesh, i don't understand if IRCTC Server is not able to handle the load of so many agents, why do IRCTC make so many agents.

i think they are trying to hide their in capabilities by restricting the Authorized agents and allowing the business of Dalals 7 Touts to Boom.

RAKESH

6 years ago

if irctc and indian railway dont able provide better service and if indian rail and irctc now find problems why irctc distribute 8laks licence?
its mention in second party licence agrrement agent have permission to book 90days booking. agents using irctc site which pass from more than 3 server and payment also done but indian railway even having direct server and no need payment how they blame eticket agents who really struggle get tickets. if indian railway feels shame that they fail even having direct access than goverment need refund deposite to all agents and have to close this fake shop like irctc because than railway people and there broker can earn well from window it is not customers problem but it is railway people and there brokers problem that now they dont get extra income and it is the fact for which now they claim eticket agents.

AKASH SINGH

6 years ago

jab service hi band karna tha to agency kyu diya agency se ek family ka pet chalta mamta ji ek taraf factory dal rahi hai ektaraf pet pe lath mar rahi hai plz think about agents . thanking u

Surendra

6 years ago

HI Narendra, sorry to see people who are educated and have a strong point of vierw talk like that. Have you thought about the people who do not have means or instruments to go online to do the booking do you know they can only approach the touts who are going to do nothing but charge 2 - 3 times the cost of a normal ticket?

markandey

6 years ago

koi fayda nahi e-ticket se sabhi yatriyo ko ticket mil jata hai yeh suvidha band hone railway counter dalao aur apretero ki mili bhagat se aur kala bazari bhad jaygi.

ZAHER CHAKI

6 years ago

This new decision of IRCTC will destroy our existing business,our customers will break and we will be unemployed.Therefore we request you to rethink on your decision and allow us to continue and there are many like us who are depending for their daily bread from this business.
New direction for irctc e-ticket agents
pleas pleas pleas
not off page

Kunal Reddy

6 years ago

5. What railway needs to do is Improve first the railway service in booking train tickets, their site never works properly to book a normal ticket let alone the tatkal ticket, and if by mistake you login at 8 am the website then crashes before ticket is removed, this is all railway system which is not upto the mark which is cause all this, they should solve this first then look at harassing us agents

RAMESH

6 years ago

yay

Narendra Doshi

6 years ago

Much needed gesture from Mamta. Hope the implementation date is pretty soon. I am sure the outcome will be as desired benefitting the common man.

Shell Game: RNRL merger with Reliance Power is Anil Ambani’s attempt to put some substance in a shell

Reliance Power’s merger with RNRL will mean little to either companies. It also underlines how wrong the market can be about a stock’s value

Reliance Natural Resources (RNRL) stock plummeted 27.6% on Monday to Rs 46.4, from the previous day's closing price, followed by a further weakening on Tuesday. This follows what seemed to the market an unfavourable share-swap ratio in its merger with Reliance Power. An episode like this underlines how markets can be hugely wrong for a long stretch of time. Was the swap ratio really unfavourable?

RNRL has been trading at around Rs70 for the past few months. At its height in 8 June 2008, it traded at a price as high as Rs245. All this while RNRL has been a shell company with virtually no business, except some claimed prospects in coal-bed methane. Investors and punters were hoping that it would trade in gas and make huge money through what economists call rent-seeking. It was supposed to buy gas from Reliance and sell it to the gas-based power plants of Anil Dhirubhai Ambani Group. ADAG also showed a vague pretence to get into other resource businesses. One was cement for which it hired Anil Singhvi, former managing director of Ambuja Cement. But this was dropped after a year or so. Now comes the merger with Reliance Power which finally underlines that RNRL has no future on its own. It was born a shell and died a shell.

On Friday, the boards of RNRL and Reliance Power approved a merger. KPMG valued RNRL at Rs 7,157 crore, leading to a share-swap ratio of 4:1. The market expected a share-swap ratio of 3:1 based on the trading price of the two stocks.

RNRL had closed on Friday at Rs63.65 while Reliance Power was at Rs175.15. It was ridiculous for the market to value RNRL so highly in the first place. What begs the question is what does RNRL have by way of assets and revenues that it was valued at over Rs7,000 crore? On the other hand, didn't Reliance Power make India's largest and most-hyped public issue in January 2008 when it was a shell company but instantly entered all the major market indices and also the derivatives segment? The two are of a kind. Subsequently, Reliance Energy's power assets were shifted to Reliance Power to add some assets. Now RNRL gets erased.

The merger was the only way out for ADAG to allocate gas to Reliance Power as the government's gas-utilisation policy does not give priority to a gas-trading company like RNRL but to only actual gas users like power and fertiliser companies. This was again affirmed by the Supreme Court of India in May this year stating that the government has the right and power to set up the price and users for gas. This supposedly left no or little opportunity for RNRL which was set up five years before with the only purpose of procuring gas for Reliance Power.

The merger has salvaged RNRL at the expense of the shareholders of Reliance Power which plans to set up a huge 37,000MW capacity out of which 10,000MW of power will supposedly be generated from gas. The company is talking of setting up seven coal-fired power plants, two gas-fired units and seven hydroelectric projects. 

The official reason for valuing RNRL so highly is that it has coal bed methane blocks with estimated resources of 193 billion cubic meters and an oil & gas block (RNRL holds 10% stake) with acreage of 3,619 sq km and reserve potential of up to 28 billion cubic metres. All these are currently estimates and ADAG's projections and estimates have proved to be notoriously fickle. The merger carries no synergy and erases another iffy chapter of ADAG companies.

User

COMMENTS

rakesh

6 years ago

Why DONT INDIAN Govt or SEBI ask Anil ambani any question and compensate the share holders on RNRL share swap ratio??? ANIL AMBANI Is the biggest cheater in India in 2010. I have lost 20k due to this..and already due to this idiot anil, i lost 75k in 2008. He has spoilt name of Dhirubhai..not worth to be a son of great.

Rakesh

bse bull

6 years ago

Dono bhai chor hai..

Aam logon ko lutne ka hi unka agenda hai.

I am sure anil ambani will buy new helicopter or charter plane for his dear wife and more mercedez car for his dear childrens in coming years.

Akhir sab pap ka paisa hai , logon kop lutke kamaya hai. Such money wont offer him any satisfaction for sure.

sachin shah

6 years ago

this both the brothers are big indian burglars, and seems just indian government have no law for them. they consider the shareholders as beggars. and it is the shareholders have to suffer for their internal fights.
as far as RNRL shares are concern ADA is happy as he is going to make money.and also i would like to ask KPMC the basis of valuation, and also this must be published(without editing) if they feel this is right.

Sachin

joe

6 years ago

Only one comment is authored by me on this web page above.

Like case siting in the court, our favorite (or notorious) Raju can very well seek Court's forgiveness, as his companies have some real assets stacked aside unreal assets.
But in RPOWER and RNRL, what is tangible asset is the first letter R.
Raju should be allowed now to merge one or more of MAYTAS to erase the footprints of non-existent assets since now there is a precedence.
And do not forget, regulators allowed RPOWER share to be valued at Rs.480 instead of Rs.4.80 in the first place as it had huge reserves and assets and profits pouring in at the time of IPO.
Anyhow cheers for moneylife for highlighting all this. But be careful and scarefull of POWER full people on this planet as money and life for them are created out of thin air and at will are erased in thin air.
God bless you, moneylife

K B Patil

6 years ago

You can fool all the people for some time and some people all the time. But you cannot fool all the people all the time. Well, ADAG's day of reckoning has come closer and so the promoter is busy doing a hasty cleanup job. I hope that, henceforth, this group's companies are valued on the basis of hope and not HYPE.

SURENDRA

6 years ago

rnrl is a fraud company.
It is not a true way to earn money.

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