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Stock analysts back RTI Act on bourses

Experts say that the CIC can ensure that important data is made available to public in cases of manipulation.

business Updated: Jun 18, 2007 11:59 IST

The Central Information Commission's (CIS) decision to bring stock exchanges within the purview of RTI Act will keep the bourses on high alert and ensure that necessary information is made available to public in cases of manipulation by operators, feel experts.

"The RTI Act will ensure that stock exchanges reveal information to investors on suspected cases of manipulation," investment consultant Prime Database's Managing Director Prithvi Haldea told PTI.

However, he added, the decision of the CIC would not cut much ice as enough transparency is available in working of the stock exchanges since their corporatisation.

"The stock exchanges are no more fiefdoms of brokers and manipulators," Haldea said adding they are monitored by market regulator Securities and Exchange Board of India (SEBI) on a daily basis.

The CIC order, said Diljeet Titus, senior partner of the corporate law firm Titus and Co, "will keep stock exchanges on high alert and ensure that they remain vigilant and transparent."

The decision, he added, would open yet another window for investors to seek information from the stock exchanges and pursue legitimate interests.

In an era of transparency when bulk of the commercial information is available in public domain, Titus said, "it will not be in the public interest to hide or withhold information."

The CIC in its recent order, overruling the objections of the finance ministry and National Stock Exchange (NSE), held that bourses being "quasi-governmental body" are public authorities and hence would come within the purview of the Right to Information Act.