Surging markets: CJI advises Sebi, SAT to be cautious

MUMBAI: Chief Justice of India D Y Chandrachud on Thursday advised markets regulator Sebi and the Securities Appellate Tribunal to exercise caution amid a significant surge in equity markets and pitched for more tribunal benches to ensure that the "backbone is stable".
Inaugurating the new SAT premises here, CJI Chandrachud pitched for authorities to consider opening up new benches of the SAT given the higher workload because of the higher quantum of transactions and newer regulations.
Referring to newspaper articles calling the crossing of 80,000-point-milestone by the BSE as an ecstatic moment, where India is entering a "stratospheric domain", the CJI pointed out that such events emphasise the need for regulatory authorities to ensure that everyone holds their "balance and nerves" amid the wins.
"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," the CJI said.
He added that Sebi and appellate fora like SAT assume "immense national importance" in fostering a stable and predictable investment environment, and explained how this can benefit in economic growth for the country.The role of SAT in the "dog eat dog" world of finance is that of a referee by ensuring that everybody plays by the rules, he said.Agencies