Supreme Court tells Sebi to let company access documents in share acquisition probe
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Reliance had argued that Sebi was only disclosing excerpts of the opinions by Srikrishna that “vaguely point to the culpability” of the company. Sebi was refusing to divulge the other parts of these reports that “exonerate” the company, it had said.
“Another disconcerting aspect of this case that comes to the fore is Sebi’s attempt to cherry-pick the documents it proposes to disclose,” the bench observed. “Such cherry-picking by Sebi only derogates the commitment to a fair trial…”
“Such selective disclosure cannot be condemned in law as it clearly amounts to cherry-picking,” the apex court bench said.
The regulator said the documents in question contain “privileged” information that did not need to be disclosed at this “premature” stage. The apex court did not agree with Sebi’s argument.
“The approach of Sebi in failing to disclose the documents also raises concerns of transparency and fair trial. Opaqueness only propagates prejudice and partiality. Opaqueness is antithetical to transparency,” the bench observed. “Principles of fairness and transparency of adjudicatory proceedings are the cornerstone of the principles of open justice.”
The case centers around whether Sebi should share all relevant investigation documents with accused parties. Legal experts say this has been a controversial issue for a long time since the regulator adopts a conservative approach.
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