Supreme Court Stays NSE RTI Act Classification

The Supreme Court on Friday issued a stay on a Delhi High Court ruling that brought the National Stock Exchange (NSE) within the purview of the Right to Information (RTI) Act. This decision provides the bourse interim protection as it appeals the earlier judgment.

Concurrently, the apex court also paused a 2007 order from the Central Information Commission (CIC). This previous order had asserted that stock exchanges, by performing public functions, qualify as “public authorities” under the RTI Act.

Understanding the ‘Public Authority’ Debate

The core of the legal dispute revolves around whether the NSE, a private entity, should be classified as a “public authority” as defined by Section 2(h) of the RTI Act. This classification dictates whether an organization is obligated to respond to information requests from citizens.

Key judicial and regulatory decisions in this matter include:

• Central Information Commission (CIC): Issued a 7 June 2007 order, stating stock exchanges perform public functions.
• Delhi High Court: Delivered a 1 July 2026 judgment, upholding the CIC’s stance and applying it to NSE.
• Supreme Court: Granted interim protection against both the Delhi High Court’s judgment and the CIC’s 2007 order.

Solicitor General Tushar Mehta, representing the NSE, argued that the exchange should not be considered government-controlled simply because it performs regulatory functions in the securities market. He contended that stock exchanges do not meet the statutory definition of a “public authority” under Section 2(h) of the RTI Act.

NSE’s arguments against RTI applicability include:

• The exchange is not established under the Constitution or by law, nor is it substantially financed or controlled by the government.
• Bringing exchanges under the RTI framework would significantly disrupt operations, citing three crore transactions occurring daily.

Judicial Perspectives on Transparency

The Delhi High Court, in its 2026 judgment, had affirmed that the NSE satisfies the definition of a public authority under Section 2(h) of the RTI Act. The court noted that “not only the Central Government but also a statutory authority exercises deep and pervasive control over the Stock Exchange.”

During the recent Supreme Court proceedings, the bench observed, “these are days of transparency,” highlighting the broader context of public information access. However, the interim stay provides the NSE a temporary reprieve from immediate compliance with the RTI Act.

This interim stay by the Supreme Court comes as the NSE is seeking regulatory approval for its initial public offering (IPO), which is anticipated to be India’s largest, according to its draft red herring prospectus filed with SEBI.