In a significant ruling on the scope of the Right to Information (RTI) Act, the Delhi High Court has held that the National Stock Exchange of India Ltd. (NSE) qualifies as a "public authority" under Section 2(h) of the Right to Information Act, 2005. The Division Bench upheld an earlier Single Judge's decision and dismissed the exchange's appeal, concluding that the NSE falls within the definition of a public authority both because of the nature of government control over it and the statutory framework governing its functioning.
Background of the Case
The appeal arose from a 15 April 2010 judgment of a Single Judge of the Delhi High Court, which had held that the National Stock Exchange is a public authority under the RTI Act. Challenging that finding, the NSE argued that it is a private company incorporated under the Companies Act and merely regulated by the Securities and Exchange Board of India (SEBI). It contended that regulatory oversight could not be equated with government control for the purposes of the RTI Act.
The principal question before the Division Bench was whether the NSE falls within the definition of "public authority" under Section 2(h) of the RTI Act.
Court's Observations
After examining the statutory provisions and previous Supreme Court decisions, the Bench agreed with the conclusions reached by the Single Judge.
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The Court observed that the Supreme Court's decision in Thalappalam Service Cooperative Bank Ltd. v. State of Kerala identifies six categories of institutions that may qualify as public authorities under the RTI Act. According to the Bench, the NSE satisfies the relevant categories under the Act.
Addressing the issue of government control, the Court relied on the earlier decision in K.C. Sharma v. Delhi Stock Exchange, which had found that recognised stock exchanges are subject to deep and pervasive governmental control under the Securities Contracts (Regulation) Act and the SEBI Act.
Rejecting the NSE's argument that the earlier judgment was confined to service law, the Bench said:
“It cannot be said that the Central Government has deep and pervasive control over the DSE for service matters, but not for other cases.”
The Court held that this reasoning applied equally to the National Stock Exchange.
The Bench further observed that recognition granted by SEBI is not a mere regulatory formality. Since the NSE cannot legally function as a stock exchange without recognition under the statutory framework, that recognition assumes legal significance while determining whether it is a public authority.
The Court noted:
“Without recognition by the SEBI, the NSEI could not function as a stock exchange at all.”
Why the Court Held NSE to Be a Public Authority
The Court concluded that the NSE qualifies as a public authority on two independent grounds.
First, it held that the exchange is subject to deep and pervasive governmental control through the statutory framework governing recognised stock exchanges. This brings it within the inclusive part of Section 2(h) of the RTI Act.
Secondly, the Court agreed with the Single Judge that the NSE also satisfies the first part of Section 2(h). Although incorporated as a private company, it can function as a stock exchange only after statutory recognition by SEBI acting under powers delegated by the Central Government. Therefore, it falls within the category of bodies constituted through an order of the appropriate Government.
Decision
Finding no error in the earlier judgment, the Division Bench affirmed the Single Judge's decision in its entirety.
The Bench concluded:
“We affirm and uphold the judgment of the learned Single Judge. The appeal is dismissed, with no orders as to costs.”
Case Details:
Case Title: National Stock Exchange of India Ltd. v. Central Information Commission & Ors.
Case Number: LPA 315/2010
Judge: Justice C. Hari Shankar and Justice Om Prakash Shukla
Decision Date: 01 July 2026
