Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securities and Exchange Board of India Act 1992 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Securities and Exchange Board of India Act 1992 (SEBI) – ss. 11(1), 11(4), 11B, 11B(1), 11B(2), 11C and 15HA – SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations 2003 (PFUTP Regulations) – Regn. 3(b), 3(c), 3(d), 4(1), 4(2)(e), 4(2)(k), 5, 6, 9, 10, 11 and 12 – Regn. 6 – Disclosure of investigation report – Appellant was employed as MD and CEO in a public listed company – Show cause notice issued to the appellant for violation of the provisions of the SEBI Act, SCRA and PFUTP Regulations – Show cause notice specifically relied upon the report of the investigation and invokes, inter alia, a violation of the PFUTP Regulations by the appellant – Appellant responded to show cause notice stating that he had not received the report of the investigation conducted by SEBI – Respondent-SEBI stated that the investigation report is an ‘internal document’ which cannot be shared – Appellant reiterated the demand to receive report of the investigation conducted by SEBI – Whether an investigation report under Regulation 9 of the PFUTP Regulations must be disclosed to the person to whom a notice to show cause is issued – Held: The Board should determine such parts of the investigation report u/Regn. 9 which have a bearing on the action which is proposed to be taken against the person to whom the notice to show cause is issued and disclose the same – The Board shall be duty-bound to provide copies of such parts of the report which concern the specific allegations which have been levelled against the appellant in the notice to show cause – It can redact information that impinges on the privacy of third parties – It cannot exercise unfettered discretion in redacting information – The institution/authority/agency can withhold disclosure of those sections of the report which deal with third party personal information and strategic information bearing upon the stable and orderly functioning of the securities market – Respondent should prima facie establish that the disclosure of the report would affect third-party rights and the stability and orderly functioning of the securities market – The onus then shifts to the appellant to prove that the information is necessary to defend his case appropriately. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 208 |
Petitioner | T. Takano |
Respondent | Securities And Exchange Board Of India & Anr. |
SCR | [2022] 16 S.C.R. 212 |
Judgement Date | 2022-02-18 |
Case Number | 487 |
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