Chief Justice of India (CJI) DY Chandrachud has emphasised the need for additional Securities Appellate Tribunals (SAT) to accommodate the rapid growth in the market and the increased volume of financial transactions. During the inauguration of the new SAT premises, the CJI highlighted the importance of promptly filling vacancies in the SAT. He urged authorities to consider establishing new SAT benches to manage the higher workloads resulting from the surge in transactions and the introduction of new regulations.
Referring to media reports celebrating the BSE crossing the 80,000-point milestone, which marks India’s entry into a "stratospheric domain," the CJI underscored the need for regulatory authorities to maintain composure and balance amid such significant achievements. "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.
SAT's presiding officer Justice PS Dinesh Kumar said there are 1,028 pending appeals in the SAT and it has disposed of over 6,700 appeals since its inception in 1997. The CJI said timely actions and correction of aberrations are very important in the financial sphere, and cited a 5-bench judgement on a critical matter recently which came within a month of the original order as a case in point. The CJI also shared the thinking during the selection of the SAT head recently to point out that there is a perception in the "highest level of government" that it is a key tribunal in terms of economic regulation.
What is SAT?
Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act. The jurisdiction of the Securities Appellate Tribunal extends to companies situated across India. The Securities Appellate Tribunal has only one bench which sits in Mumbai and its jurisdiction extends across the country.
Composition of SAT
SAT consists of a Presiding Officer and Two other members. The Presiding officer of SAT is appointed by the Central Government in consultation with the Chief Justice of India or his nominee. It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.
Functions of SAT
- To hear and dispose of appeals against orders passed by the SEBI or by an adjudicating officer under the SEBI Act,1992.
- To hear and dispose of appeals against orders passed by the Pension Fund Regulatory and Development Authority (PFRDA).
- To hear and dispose of appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI).
