CJI Chandrachud calls for SEBI, SAT caution amid market surge

Chief Justice of India DY Chandrachud advised market regulator SEBI and the Securities Appellate Tribunal (SAT) to exercise caution amidst the significant surge in equity markets and advocated for more tribunal benches to ensure stability. During the inauguration of the new SAT premises in Mumbai on Thursday, CJI Chandrachud stressed the need for additional SAT benches due to increased workloads from higher transaction volumes and new regulations. He referred to recent newspaper articles highlighting the BSE's milestone of crossing 80,000 points as an "ecstatic moment" for India, entering a "stratospheric domain."
"The surge in the stock market underscores the greater role for SEBI and SAT to exercise caution, celebrate successes, but also ensure stability," he said.CJI Chandrachud highlighted the importance of SEBI and SAT in fostering a stable investment environment, which benefits economic growth. He noted that when investors feel assured that their investments are protected by law and that effective dispute resolution mechanisms are in place, they are more likely to invest, leading to better economic outcomes such as increased capital formation, job creation, and overall economic growth.
"The role of SAT in the competitive world of finance is akin to that of a referee ensuring everyone plays by the rules," he said, stressing the need for regulatory bodies to stay updated with new developments.CJI Chandrachud stressed the importance of timely actions and corrections in the financial sphere, citing a recent 5-bench judgement on a critical matter as an example of swift judicial response.He also launched a new SAT website created by the National Informatics Centre, underscoring the need to focus on technology advancements to reimagine access to justice.