Supreme Court Halts RTI Jurisdiction Extension Over National Stock Exchange

Judicial Suspension of Transparency Requirements

The Supreme Court of India intervened on July 31, 2026, to pause a lower court's mandate that would have subjected the National Stock Exchange of India (NSEI) to the Right to Information (RTI) Act. Justices Vikram Nath and Sandeep Mehta issued the stay after the NSEI filed a petition challenging its classification as a public authority. This legal maneuver prevents citizens from filing RTI requests with the exchange while the apex court reviews the definition of government control over the entity.

A Decade of Legal Friction

The current dispute stems from a long-standing disagreement regarding the exchange's legal status under Section 2(h) of the RTI Act. Earlier in July, a division bench of the Delhi High Court had upheld a 2010 decision by a single judge. That prior ruling concluded that the NSEI falls under the scope of the Act because it is effectively controlled by the appropriate government. The NSEI has consistently countered this view, originaly appealing a Central Information Commission directive that sought to open its books to public scrutiny.

Next Steps in the Litigation

The Supreme Court has requested formal responses from the Central Information Commission and other involved parties regarding the NSEI's petition. Key factors in the upcoming hearing include:

• Determining whether the NSEI is owned, controlled, or substantially financed by the government.
• Reviewing the division bench’s July 1 verdict that affirmed the 2010 decision.
• Clarifying the limits of the RTI Act's reach into quasi-governmental financial institutions.

The Bench has scheduled the next hearing for four weeks from the date of the stay. Until the court reaches a final determination, the NSEI remains exempt from the transparency obligations typically reserved for state-run or state-controlled organizations.

Source: The Hindu — National