'The more you see the surge in stock market...': CJI DY Chandrachud raises a retail investor red flag

Chief Justice of India D Y Chandrachud has called on the Securities and Exchange Board of India (SEBI) and the Securities Appellate Tribunal (SAT) to exercise caution and maintain a stable regulatory framework, even as the stock market continues to soar.

Addressing the inauguration of SAT's new premises in Mumbai, Chandrachud highlighted the pivotal role of SEBI and SAT. "The more you see the surge in the stock market, the greater the role, I believe, for SEBI and SAT, as institutions which will exercise caution, celebrate the successes but at the same time, ensure that the backbone is stable," he remarked.

Chandrachud acknowledged the rapid growth in market participants and transaction volumes, noting the potential rise in disputes and regulatory non-compliance. He suggested that additional SAT benches might be necessary to handle the increasing workload, urging policymakers to consider this expansion.

For investors, robust legal protection and effective dispute resolution mechanisms are essential for fostering confidence. Chandrachud emphasized this point, stating, "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."

Justice P S Dinesh Kumar, SAT's presiding officer, revealed that the tribunal currently has 1,028 pending appeals and has disposed of over 6,700 appeals since its establishment in 1997.

The Chief Justice also launched SAT's new website, developed by the National Informatics Centre, underscoring the importance of technology in enhancing access to justice and supporting the tribunal's operations.