Chief Justice of India, DY Chandrachud, inaugurated the new premises of the Securities Appellate Tribunal (SAT) at Mittal Court in Mumbai on Thursday and highlighted the importance of Securities and Exchange Board of India (SEBI) and SAT amidst surges in the stock market.
Addressing the event, the CJI said that 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.
“When we think of the idea of ‘rule of law’, we often associate it with only social and political justice. However, as early as 2005, the World Bank theorised that protecting the ‘rule of law’ is also intrinsically linked to better economic outcomes and financial advancement. 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,” he said.
“Therefore, regulators like SEBI and appellate forums like the SAT assume immense national importance in fostering a stable and predictable investment environment. 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,” the CJI added.
DY Chandrachud also emphasised that behind the effective functioning of our tribunals and courts, are the registrars, researchers and staff who keep the “machinery well-oiled.”
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“When we think of adjudicatory forums–be it our tribunals, high courts, or the Supreme Court–we often think only about judges, lawyers, and litigants. However, behind the effective functioning of these forums, are the registrars, researchers, administrative staff and other officials who keep the machinery well-oiled,” he said.
He also mentioned that the Securities Appellate Tribunal (SAT) is like a referee, ensuring that in the ‘dog-eat-dog’ world of finance, all stakeholders play by the rules. “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,” CJI Chandrachud said.
“As you all know, the Supreme Court hears statutory appeals from the SAT and while each case has its journey, I have consistently observed that the judgements coming from this tribunal reflect a deep understanding of not only law and the relevant regulations in a pedantic sense but also of commercial realities and the intricacies of the capital markets. Not only the bench but also the bar practicing before the SAT, has consistently portrayed a high level of expertise and professionalism,” he added further.
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