Disclosure of investigation report: material forming the basis of prosecution must ordinarily be supplied for fair defence.

Where an investigative report forms the basis of the authority's satisfaction to initiate prosecution, it is a relevant and material document that must ordinarily be disclosed to the person proceeded against to ensure a fair defence. The SEBI investigation report was treated as an intrinsic part of the decision-making process, not a mere internal record, and disclosure was required because relevance and nexus with the action taken govern the duty of supply, not the authority's label. Limited redaction was permissible only for confidential third-party or market-sensitive material. The accused was entitled to the report.

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Issues: Whether, in a prosecution launched by SEBI, the accused was entitled to disclosure of the Investigation Report and related material that formed the basis of the complaint, in addition to the documents formally supplied with the complaint.

Analysis: The disclosure obligation was examined in the context of the SEBI regulatory scheme and the settled principle that a person facing adverse proceedings must receive the material that is relevant to the decision-making process and necessary for a fair opportunity of defence. The Investigation Report under the SEBI framework was held to be an intrinsic part of the Board's satisfaction for initiating action, not a mere internal or administrative record. The governing principle drawn from the relevant precedents was that the test is relevance and nexus with the action taken, not whether the authority labels the document as unrelied upon. Only limited redaction could be justified for confidential third-party or market-sensitive material, but the report in substance had to be disclosed where it formed the basis of prosecution.

Conclusion: The accused was entitled to the Investigation Report and the respondents were directed to furnish it in accordance with law.

Ratio Decidendi: Where an investigative report forms the basis of the authority's satisfaction to initiate proceedings, it is a relevant and material document that must ordinarily be disclosed to the person proceeded against to ensure a fair hearing, subject only to limited redaction for confidential or third-party material.

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