Chief Justice of India DY Chandrachud has asked the Securities and Exchange Board of India (SEBI) and the Securities Appellate Tribunal (SAT) to tread carefully and maintain a stable regulatory framework even as stock markets continue to soar.
Speaking at the inauguration of SAT’s new facility in Mumbai, Chandrachud emphasised the vital role of SEBI and SAT. “The more we see the stock markets soaring, I believe the greater the role of SEBI and SAT as institutions that can act with caution, celebrate successes but at the same time ensure stability in the backbone,” he said.
Chandrachud acknowledged the rapid growth in market participants and trading volumes, which could lead to an increase in disputes and regulatory violations. He suggested that additional SAT benches may be needed to cope with the increasing workload and urged policymakers to consider this expansion.
For investors, strong legal protections and effective dispute resolution mechanisms are essential to foster confidence. Chandrachud emphasized this point, saying, “Investors are more likely to put their money into a country’s market if they are confident that their investments are protected by law and there are effective mechanisms for dispute resolution. This inflow of investment can translate into better economic outcomes such as increased capital formation, job creation and overall economic growth.”
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 formation in 1997.
The Chief Justice also unveiled the SAT’s new website, developed by the National Informatics Centre, highlighting the importance of technology in improving access to justice and supporting the administration of courts.
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