RTI in publicly listed companies

[known]

Isn't it desirable for all publicly listed companies in NSE and BSE to comply with RTI?

[kushal]

This topic may be of interest of yours:
Is it possible to ask information from a public Limited company

Regards,

[murgie]

Originally Posted by known

Isn't it desirable for all publicly listed companies in NSE and BSE to comply with RTI?

Desirable? Obviously yes. It would make for cheaper efforts at getting information. But I suspect that is hoping for too much.

But note that listed companies are currently subject to broad regulatory requirements imposed by SEBI and any additional requirements imposed by the exchanges themselves. These include disclosure requirements (e.g. financial statements, any important corporate news known first to the company's own officers, etc) and corporate governance rules (e.g. need for a certain percentage of independent directors). Some of this can be obtained from the existing public disclosures on the websites of the exchanges and of SEBI. These include periodic filings relating to the above matters as well as special disclosures to ensure compliance to guidelines. From some of these it can be seen that SEBI is quite lax in its regulation (e.g. few companies meet the required std for percentage of independent directors), which suggests that disclosure by itself isn't helping enough. Not enough use has been made of existing information to hold SEBI, the exchanges and the companies accountable (e.g. I am not aware of any suits by shareholders complaining there aren't enough independent directors).

Of course, there is a lot of information beyond currently mandated disclosures that would also serve the public interest. But for those, even listed companies would have to be considered "public authorities," to fall within the scope of RTI 2005, and afford us a cheaper alternative than the Companies' Act and SEBI's rules. The only potential way in some cases to invoke RTI would be to pose the question in a way that makes SEBI the respondent. I've tried it without any success so far. SEBI is one of the most stubborn and non-transparent public authorities we have. Getting it to yield even an inch will take something. I hope more people will try. Best,

Murgie

[known]

Current Share Price of the Company = 5 x Book value Per Share of the Company.
Current Market Capitalization of the Company = 10 x Quarterly Revenue/Sales of the Company.

Therefore all publicly listed companies in Indians stock exchanges are
predominantly 'owning' and 'operating' on public money.

SEBI should to direct all listed companies to
comply with RTI Act (Right to Information Act).

This will enhance 'transparency' and enable retail investors
to invest wisely in companies through stock markets.

This will also prevent scams in stock markets.

[murgie]

Dear "known:"

What your point is beats me completely. This website as far as I can tell is not a vehicle for political mobilization of any kind. It's a very useful information source on RTI, and that's it. Just so you know: a lot of officials of public authorities (including possibly SEBI) also use this site.

Sitting at a terminal and piously indicating (to the already converted) what SEBI "should" do is not useful. Try and send SEBI an RTI request and you will learn a lot from that. Cheers. -Murgie

[karira]

Members please note that unlike the RTI Act in India, the draft of the Bangladesh RTI Law covers even the private sector:

While the Indian act only makes disclosing information to public compulsory only for government offices and other organisations that receive public fund, the draft of the RTI Ordinance 2008 covers public offices, any company, corporation, trust, firm, society, cooperative society, NGOs, private organisations, associations and organisations registered under any law of the land.

Please also read these related threads:

BANGLADESH: Info on public interest ensured in RTI

Exemption should be specific to stop misuse

[colnrkurup]

I am one of those exceptions who maintain a separate view on the subject. As per Section 2(j) "right to information" means the right to information accessible under this Act which is held by or under the control of any public authority and includes the right to........

According to my interpretation, there is nothing in India which is not under the control of "Constitution of India" vis-a-vis any public authority. For Eg. take an ordinary Private Shop. He need licence to run the shop, has to do his business under various provisions of various Acts including Consumer Protection Act. If that shop is not abiding by those acts under the control of the respective public authority, that particulr authority can arrange to shut down that shop.

In this way every Companies whether publicly listed or not is defenitely under the control of any public authority and can be made to fall under the ambit of the RTI Act. But who will bell the Cat ?

[wehelp]

there is nothing in India which is not under the control of "Constitution of India" vis-a-vis any public authority. For Eg. take an ordinary Private Shop. He need licence to run the shop, has to do his business under various provisions of various Acts including Consumer Protection Act. If that shop is not abiding by those acts under the control of the respective public authority, that particulr authority can arrange to shut down that shop.

I completely agree with the intrepretations made by colnrkurup shaab

[sanjeev]

it is very much desirable as it is public's money with which they are playing. and public money must bring public accountability. the public companies must divulge the information to the public. since the public is the owner of the company (through equity share holding), it is like giving information to your owners. ,oreover in ademocracy the citizen is supreme and soverign.