CJI DY Chandrachud Calls For More SAT Benches, Urges Caution Amid Market Rally
The CJI emphasised the crucial role of the SEBI and SAT in creating a stable and predictable investment environment.
Chief Justice of India DY Chandrachud has called for more Securities Appellate Tribunal benches, to handle the increased workload due to higher transaction volumes and new regulations. He also advised SEBI and the SAT to exercise caution, given the Indian markets' euphoric rally recently.
Chandrachud inaugurated new SAT premises in Mumbai on Friday. During his address he called the event a 'homecoming' as he had first appeared as a lawyer in the tribunal, and advocated for more SAT benches, citing statutes that allow for such arrangements.
Creating additional benches is a policy issue that should be considered by the responsible authorities, he told the media.
The Chief Justice also launched a new SAT website developed by the National Informatics Centre and stressed on the importance of technology in ensuring access to justice, urging for a reimagining of this concept in the digital age.
The CJI emphasised the crucial role of the Securities and Exchange Board of India and Securities Appellate Tribunal in creating a stable and predictable investment environment, which is vital for national economic growth.
The role of SAT in the 'dog eat dog' world of finance is that of a referee in ensuring that everybody plays by the rules, he said, stressing on the need to be updated by keeping pace with new developments.
"When investors feel assured their investments are protected by law and there are effective dispute resolution mechanisms, they are more likely to invest. This influx can lead to increased capital formation, job creation, and overall economic growth," he said.
Chandrachud highlighted SAT's crucial role in enforcing rules and adapting to market changes despite rising disputes and non-compliance due to rapid growth. He called for promptly filling SAT vacancies, citing increased appeals related to market conduct and corporate governance.
SAT's presiding officer Justice P S Dinesh Kumar said that SAT has 1,028 pending appeals and has disposed of over 6,700 since it's inception in 1997. The CJI emphasised the importance of timely financial decisions, referencing a recent five-bench judgment delivered within a month.
(With inputs from PTI).
