Advice from Chief Justice Chandrachud to SEBI, SAT

Chief Justice of India DY Chandrachud urged the Securities and Exchange Board of India (SEBI) and the Securities Appellate Tribunal (SAT) to tread carefully and stressed the need for a stable regulatory framework amid soaring market milestones.

“The more we see a surge in stock markets, the greater the role of SEBI and SAT will be, I believe. Both agencies will tread carefully and celebrate successes, but at the same time, ensure that the backbone remains stable,” the Chief Justice said at the inauguration of the SAT’s new facility in Mumbai on July 4.

While acknowledging the rapid growth in market participants and trading volumes, Chandrachud noted the potential for increased disputes and regulatory violations. He proposed setting up additional SAT benches as a “policy agenda” to address the growing workload and urged decision makers to consider this expansion.

Addressing the gathering, Chief Justice Chandrachud stressed that strong legal protections and effective dispute resolution mechanisms are essential to attract investment and promote economic outcomes such as capital formation and job creation.

“Investors are more likely to put their money into a country’s markets if they are confident that their investments are protected by law and that there are effective mechanisms for dispute resolution. This inflow of investment can lead to better economic outcomes, such as increased capital formation, job creation and overall economic growth,” the Chief Justice said.

In his remarks, SAT presiding judge Justice PS Dinesh Kumar said the tribunal currently has 1,028 pending appeals and has disposed of over 6,700 appeals since its establishment in 1997.

The Chief Justice finally unveiled the SAT’s new website, developed by the National Informatics Centre, and stressed the importance of technology in improving access to justice and supporting the administration of courts.

(With PTI input)