Mumbai, Sept. 12 -- The Securities and Exchange Board of India (Sebi) has told the Bombay High Court that shareholders' right to information outweighs promoters' claims of privacy when it comes to disclosure of private agreements.

In an affidavit filed in response to a challenge by five Kirloskar Group companies, the market regulator argued that investors must be informed of any pact that could affect a listed company's management, control, or business, even if the firm is not a party to it.

Mint has reviewed a copy of the affidavit, which firmly rejects the petitioners' claims that the rules are arbitrary and overreaching.

Sebi's filing is the latest development in a high-stakes legal battle initiated by Kirloskar firms to challenge t...