CIC asks SEBI to re-examine decision on RTI appeal
New Delhi: The Central Information Commission has directed market regulator SEBI to re-examine its decision to deny information about observation cards on schemes of Birla Mutual Fund.
Rejecting the contention of SEBI that information on observation cards cannot be shared with public, the CIC while hearing an RTI appeal, gave SEBI one month's time to re-examine the request of one Manoj Vyas who had sought information about schemes of the mutual fund house.
Vyas, a resident of Mumbai, had sought copies of the Observation Cards that are communicated by the regulator to fund managers after examining their offer documents.
The CIC, which was deliberating on whether such disclosures were exempt under the RTI Act, remitted the matter back to SEBI's Appellate Authority (AA) for a de-novo examination and asked for a reply within one month.
The commission said SEBI's contention that furnishing the Observation Cards could harm commercial interest of Birla Mutual Fund was wrong.
"What one notices in the present case is that the AA has mechanically accepted the third party's (Birla MF) objection and refused to divulge the information to Vyas," it said.
The regulator while refusing to reveal the information had further stated that divulging details pertaining to its interaction with market players was fraught with the danger of upsetting the market.