Pointing to the stock market jumps, Chief Justice of India DY Chandrachud on Thursday advised market regulator SEBI and the Securities Appellate Tribunal (SAT) to be cautious amid and pitched for more tribunal benches to ensure that the "backbone is stable".
Citing recent reports of the 80,000 points milestone by the BSE Sensex, Chandrachud said it was an ecstatic moment where India is entering a "stratospheric domain", however, he pointed out that such events emphasise the need for regulatory authorities to ensure that everyone holds their "balance and nerves" amid the wins.
Inaugurating the new SAT premises in Mumbai on Thursday, CJI Chandrachud said: "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 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.
"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," news agency PTI quoted CJI as saying.
The role of SAT in the "dog eat dog" world of finance is that of a referee in ensuring that everybody plays by the rules, he said, stressing on the need to be updated by keeping pace with new developments.
On Wednesday, Sensex hit a historic 80,000-mark, while Nifty also hit fresh lifetime high in early trade.
