CJI Chandrachud bats for additional SAT benches, cites “rapid growth in market and increase financial transactions”

“Just like any good referee, the SAT has successfully kept pace with the evolving game. As our markets and businesses become more complex and new regulations flood in, the tribunal must consistently rise to the challenge. To effectively adjudicate the appeals before the tribunal, members require not only a deep understanding of intricate financial matters but most importantly, a strong commitment to fair adjudication and procedural safeguards. This is crucial in maintaining market integrity and investor confidence,” he added.

Stressing on need for more Tribunals, CJI Chandrachud said, “The rapid growth in the number of market participants, and the increase in the volume of financial transactions, brings with it the likelihood of an increased number of disputes pertaining to regulatory non-compliance, market conduct, corporate governance, and shareholders.”

He went on to note, “The appeals filed before the SAT have increased manifold. In such a scenario, the vacancies in the SAT must be filled at the earliest to allow the tribunal to work effectively and at full capacity. In fact, the Securities Exchange Board of India (SEBI) Act also allows for the setting up of benches of the SAT. It may be worth giving greater thought to the proposals of equipping the tribunal with additional benches and improved infrastructure to manage its escalating caseload,” he added

CJI Chandrachud further said that as the SAT is having a bench only in Mumbai, it was important to provide virtual hearings and have ” digital resources to allow lawyers from different regions to appear before the tribunal easily and effectively.”

Emphasising on the importance of regulators like SEBI and the Tribunal, CJI Chandrachud stated, “A legal system that has adequate procedural safeguards, fairness, and forums that dispense justice without arbitrariness, is integral to building investor confidence in a country’s markets and business landscape. Therefore, regulators like SEBI and appellate forums like the SAT assume immense national importance in fostering a stable and predictable investment environment.”

He went on to say, “When investors feel assured that their investments are protected by law and that there are effective mechanisms for dispute resolution, they are more likely to invest in the country’s markets. This influx of investment can lead to better economic outcomes, such as increased capital formation, job creation, and overall economic growth.”