Chief Justice of India D Y Chandrachud has advised market regulator SEBI and the Securities Appellate Tribunal (SAT) to exercise caution in regard to significant surge in equity markets. He noted the need for additional tribunal benches to ensure stability.
Inaugurating the new SAT premises, CJI Chandrachud urged authorities to consider opening new SAT benches, citing increased workloads due to higher transaction volumes and new regulations.
Addressing the milestone of the BSE crossing 80,000 points, which has been lauded in the media as a historic moment for India, the CJI stressed the importance of regulatory bodies maintaining composure and ensuring stability amid market highs.
"The surge in the stock market necessitates a greater role for SEBI and SAT. While celebrating successes, these institutions must ensure stability," he said.
CJI Chandrachud underscored the national importance of SEBI and SAT in creating a stable and predictable investment environment, crucial for economic growth. He highlighted that investor confidence in legal protections and effective dispute resolution mechanisms drives investment, leading to better economic outcomes, such as increased capital formation and job creation.
"The role of SAT in the competitive finance sector is akin to a referee ensuring fair play," he said, highlighting the need for SAT to stay updated with new developments.
Given the rapid growth in market participants and transaction volumes, the CJI noted a likely increase in disputes and regulatory non-compliance. He also mentioned that issues like market conduct and corporate governance have significantly increased the number of appeals filed with SAT.
CJI Chandrachud called for the swift filling of vacancies at SAT to maintain its effectiveness. He described the event as a "homecoming," having appeared in the tribunal first as a lawyer, and advocated for more SAT benches as allowed by statutes.
He acknowledged that creating additional benches is a policy issue and expressed hope that the responsible authorities would consider it given the growing workload.
SAT's presiding officer, Justice P S Dinesh Kumar, revealed that there are 1,028 pending appeals in the SAT, which has disposed of over 6,700 appeals since its inception in 1997.
The CJI stressed the importance of timely actions in the financial sphere, citing a recent five-bench judgment on a critical matter that was resolved within a month of the original order. He also shared insights from the recent selection of the SAT head, indicating that the highest levels of government perceive SAT as a key economic regulatory tribunal. "It's crucial to have a leader with a robust approach to regulation, even if they haven't specialised in securities law," he said.
The event also saw the launch of a new SAT website, developed by the National Informatics Centre. CJI Chandrachud pointed out the importance of embracing technological advancements to enhance access to justice.