CJI Chandrachud Emphasizes the Importance of Stability Amid Market Surge

CJI Chandrachud Emphasizes the Importance of Stability Amid Market Surge

Ashiq Butt | July 4, 2024 | 03:46 PM IST | India | Follow on Google News

CJI Chandrachud Emphasizes the Importance of Stability Amid Market Surge

CJI Chandrachud Emphasizes the Importance of Stability Amid Market Surge

DELHI : Chief Justice of India D Y Chandrachud on Thursday advised market regulator SEBI and the Securities Appellate Tribunal (SAT) to exercise caution amid a significant surge in equity markets. Speaking at the inauguration of the new SAT premises, CJI Chandrachud urged authorities to consider establishing additional SAT benches due to increased workloads from higher transaction volumes and new regulations.

He referenced newspaper articles celebrating the BSE crossing the 80,000 points milestone, marking India’s entry into a “stratospheric domain.” The CJI highlighted the need for regulatory authorities to maintain their composure and stability amidst such wins. “The more you see the surge in the stock market, the greater the role for SEBI and SAT to exercise caution, celebrate successes, and ensure the backbone remains stable,” he stated.

Importance of Regulatory Stability for Economic Growth

CJI Chandrachud emphasized that SEBI and appellate bodies like SAT are crucial for fostering a stable and predictable investment environment. This stability is vital for economic growth, as it reassures investors that their investments are protected by law and that effective dispute resolution mechanisms exist. “When investors feel assured, they are more likely to invest in the country’s markets.

This influx of investment can lead to increased capital formation, job creation, and overall economic growth,” the CJI explained.He underscored the SAT’s role as a referee in the competitive financial world, ensuring that all players adhere to the rules. With the rapid increase in market participants and transaction volumes, disputes and regulatory non-compliance are likely to rise.

Issues related to market conduct and corporate governance have significantly increased appeals filed with SAT, stressing the need for timely filling of SAT vacancies to ensure effective functioning.

Timely Actions and Policy Considerations

CJI Chandrachud, describing the event as a “homecoming” due to his past appearances as a lawyer in the tribunal, reiterated the importance of more SAT benches. The current statute allows for it, and the growing workload justifies it. He later informed reporters that creating additional benches is a policy issue and emphasized that it should be considered by those responsible for such decisions.

SAT’s presiding officer, Justice P S Dinesh Kumar, reported 1,028 pending appeals and noted that SAT has disposed of over 6,700 appeals since its inception in 1997. The CJI highlighted the importance of timely actions and cited a recent 5-bench judgement that was delivered within a month of the original order as a prime example of efficient judicial response.

Furthermore, CJI Chandrachud revealed that during the recent selection of the SAT head, the “highest level of government” recognized SAT as a key tribunal for economic regulation, underscoring its immense national importance.

Ashiq Butt

Ashiq Butt – is VoM News's senior staffer worked since year 2015 and he deals with correspondency and social media handles. Hailing from Doda's Marmat, Ashiq has strong grip over the collection of the data and it's compiling feature.