Supreme Court stays Delhi HC ruling bringing NSE under RTI Act

The Supreme Court on Friday stayed a Delhi High Court ruling that brought the National Stock Exchange (NSE) within the ambit of the Right to Information (RTI) Act, giving the bourse interim relief as it pursues an appeal against the decision.

The apex court also stayed a 2007 order of the Central Information Commission (CIC), which had held that stock exchanges perform public functions and therefore qualify as "public authorities" under the RTI Act.

A two-judge bench comprising Justice Vikram Nath and Justice Sandeep Mehta issued notice on NSE's appeal and granted interim protection against both the Delhi High Court's judgment and the CIC's 2007 order until further orders. “The order passed by the Central Information Commissioner dated 7 June 2007 shall remain stayed,” the bench said in its oral order.

Solicitor General Tushar Mehta, appearing for NSE, had argued that the exchange cannot be treated as a government-controlled body merely because it performs regulatory functions in the securities market.

Mehta also contended that stock exchanges do not satisfy the statutory definition of a "public authority" under Section 2(h) of the RTI Act. He urged the bench to examine the provision, arguing that it applies only to bodies established under the Constitution or by law, or those that are substantially financed or controlled by the government.

“Public authority means any authority or body or institution of self government established or constituted… so it is a not under by any other law made by the parliament,” said Mehta.

Another counsel appearing for NSE argued that bringing exchanges under the RTI framework would disrupt their operations because of the scale at which they function. “Three crore transactions take place in one day. If three crore people start asking anything, NSE will drop,” the counsel added.

Responding to the submissions, the court observed, “these are days of transparency.”

Long-running dispute

The case stems from a 7 June 2007 order of the Central Information Commission, which held that stock exchanges discharge public functions and should therefore be treated as public authorities under the RTI Act.

The Delhi High Court, in its 1 July 2026 judgment, upheld that position, holding that NSE satisfies the definition of a public authority under Section 2(h) of the RTI Act. The court said that “not only the Central Government but also a statutory authority exercises deep and pervasive control over the Stock Exchange.”

NSE had argued before the high court that it is a private entity that is neither owned nor controlled by the government, and that regulatory oversight by the Securities and Exchange Board of India (Sebi) does not by itself bring the exchange within the ambit of the RTI Act.

The Supreme Court's interim stay comes as NSE awaits regulatory approval for what could be India's biggest initial public offering (IPO). According to its draft red herring prospectus filed with Sebi, the proposed IPO is an entirely offer-for-sale (OFS) exercise, allowing existing shareholders to sell up to 148.9 million shares. NSE will not receive any proceeds from the issue.