Chief Justice of India DY Chandrachud, while highlighting the increased importance of regulators like the Securities Exchange Board of India (SEBI) and appellate fora like the Securities Appellate Tribunal (SAT) in fostering a stable and predictable investor environment, advocated for setting up of SAT's regional benches in other parts of the countries, as well as to fill up the vacancies arising in the tribunal. 

Speaking at the inauguration of SAT's new premises and website in Mumbai on Thursday, CJI Chandrachud said the tribunal was like a referee, which ensured that in the 'dog-eat-dog' world of finance, all stakeholders played by the rules. 

Just like any good referee, the SAT has successfully kept pace with the evolving game. As the markets and businesses become more complex and new regulations flood in, the tribunal must consistently rise to the challenge, he noted.

Noting that the appeals filed before the SAT have increased manifold, the CJI said 
there was a pressing need to fill up the vacancies arising in SAT at the earliest to allow the tribunal to work effectively and at full capacity. In fact, the SEBI Act also allowed for the setting up of the SAT benches. 

He further said that the proposals of equipping the tribunal with additional benches and improved infrastructure to manage its escalating caseload should be given a thought.

The CJI further appreciated the tribunal for being at the forefront in adopting technology, including virtual hearings and e-filing, both during the Covid-19 pandemic and after it subsided.

With the rapid growth in market participants and the increase in the volume of financial transactions, the challenges of the SAT would also increase. To effectively adjudicate the appeals before the tribunal, members required not only a deep understanding of intricate financial matters but also a strong commitment to fair adjudication and procedural safeguards. This was crucial in maintaining market integrity and investor confidence, he added.

He said as the stock market surged, the role of SEBI and SAT assumed a greater significance in exercising caution and ensure that the backbone was stable.

The CJI said that a legal system with adequate procedural safeguards, fairness, and justice without arbitrariness was key to building investor confidence, which in turn led to better economic outcomes. 

When investors felt that their investments were being protected by law and there were effective dispute resolution mechanisms, they were more likely to invest, fostering capital formation, job creation, and economic growth, he added.