The Delhi High Court ruled that the National Stock Exchange of India (NSE) is a public authority under the Right to Information (RTI) Act [1].
This decision increases transparency for one of India's largest financial institutions. By classifying the exchange as a public authority, the court ensures that the organization is subject to information requests from the public, provided those requests do not fall under statutory exemptions [1], [2].
Justices C Hari Shankar and Om Prakash Shukla delivered the ruling in New Delhi [1]. The court said that the NSE performs a critical public function, which necessitates its treatment as a public authority under the law [2].
In reaching this conclusion, the court referenced an earlier single-judge judgment from 2010 [2]. The ruling establishes that the nature of the functions performed by an entity can determine its status under the RTI Act, regardless of its corporate structure.
Under the new ruling, the NSE must now comply with the procedural requirements of the RTI Act. This includes appointing officers to handle requests, and providing information to citizens within the legally mandated timeframes, unless the data is protected by specific legal exemptions [1].
The ruling follows a legal debate over whether private entities that perform essential state-like functions should be held to the same transparency standards as government departments [2].
“The court said that the NSE performs a critical public function.”
This ruling sets a significant legal precedent for the Indian financial sector. By linking 'public authority' status to the function performed rather than the ownership structure, the court has opened the door for other stock exchanges and similar market infrastructure institutions to be brought under the RTI Act. This shift moves the industry toward a model of greater public accountability and transparency in market operations.
