Chief Justice of India, D.Y. Chandrachud, emphasized the critical role of regulatory bodies such as SEBI and the Securities Appellate Tribunal (SAT) in ensuring a stable and predictable investment environment during periods of significant stock market activity. Speaking at the inauguration of the new appellate tribunal premises in Mumbai, the Chief Justice underscored the importance of these institutions in maintaining market stability, especially during times of market surges.
Chandrachud highlighted that as the stock market experiences significant growth, the responsibilities of SEBI and SAT become increasingly vital. These bodies must balance celebrating market successes while ensuring that the fundamental stability of the market is preserved.
He likened the SAT to a referee in the competitive world of finance, ensuring that all stakeholders adhere to the rules. The tribunal must keep pace with the evolving financial landscape and maintain a commitment to fair adjudication and procedural safeguards, which are essential for maintaining market integrity and investor confidence.
The Chief Justice noted that the recent milestone of the BSE crossing 80,000 points is a significant achievement, indicating India’s entry into a higher economic domain. Such milestones underscore the importance of regulatory authorities in navigating the complexities of the market. He pointed out that it is crucial for all involved, including lawyers and judges, to maintain their composure and contribute to the regulatory framework of the securities market.
Chandrachud also emphasized that investor confidence in the protection of their investments and effective dispute resolution mechanisms can lead to increased investments in the country’s markets. This influx of investment can drive economic growth, job creation, and capital formation. He advocated for additional benches of the SAT and improved infrastructure to manage the increasing caseload effectively.
Furthermore, Chandrachud addressed the rapid growth in market participants and financial transactions, which could lead to more disputes regarding regulatory compliance, market conduct, corporate governance, and shareholder issues. He also stressed the need to focus on technological advancements and reimagine access to justice in the digital era, highlighting the importance of technology in the modern regulatory framework.
By highlighting these points, the Chief Justice underscored the essential roles that regulatory bodies and judicial institutions play in fostering a stable investment environment and supporting economic growth.