In a significant ruling regarding the interplay between the right of information and the protection of the integrity of regulatory investigations, the Delhi High Court, in Srishti Rustagi v. SEBI (LPA 306/2025), upheld SEBI’s refusal to furnish details of its internal investigation into alleged insider trading, as it fell within the exemption provided in Section 8(1)(h) of the Right to Information Act, 2005.
The bench, comprising Chief Justice D.K. Upadhyaya and Justice Tushar Rao Gedela, held that the investigations carried out by SEBI are sensitive in nature, with complicated evidence collection, evidence checking and evidence methods of market activities. Results from this type of process would be frustrating conspiring the investigation by the process before the evidence collected were evaluated. This means that by revealing the details of any of these inquiries, it may disturb the process used to obtain the information, even possibly allowing people to manipulate their process in their carrying out illicit acts.
The Court held that while the RTI Act seeks to enable transparency, it must balance this with the need to protect a legitimate state function, especially where the confidentiality of any investigation is necessary for its enforcement. Section 8(1)(h) provides a reasonable protection, keeping the information from disclosure to exempt personnel or agents of the state from an investigation or prosecution when disclosing such information would stall the process of investigation, appraisal or prosecution of any offending party. In applying this tenants, the Court ultimately found that the view held by SEBI was legally sustained.
The Court added consideration of the implications that disclosing sensitive information would have on a random third party’s rights and privacy.
- Case Name: Srishti Rustagi v. SEBI
- Case No.: LPA 306/2025
- Bench: Chief Justice D.K. Upadhyaya & Justice Tushar Rao Gedela
- Judgment Date: September 18, 2025
Click HERE for full judgment.
Written By: Anushka Singh
Lawcutor 