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Security Appellate Tribunal
Context:
CJI DY Chandrachud advised market regulators like SEBI and the Securities Appellate Tribunal (SAT) to exercise caution amid a significant surge in equity markets and pitched for more tribunal benches to ensure the economy’s stability.
About Security Appellate Tribunal:
- It is a statutory body established under Section 15K of the Securities and Exchange Board of India Act, 1992.
Composition:
- Members: The SAT typically consists of a Presiding Officer and two other members, all appointed by the Central Government. Individuals with expertise in finance, securities, or law are appointed as members.
- Generally, 1 member is a Judicial member, while the other is a technical member.
- Presiding Officer: Shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee. The Qualifications of the presiding officer are:
- Is a sitting or retired Judge of the Supreme Court or a sitting or retired Chief Justice of a High Court, or
- Is a sitting or retired Judge of a High Court who has completed not less than seven years of service as a Judge in a High Court.
Jurisdiction:
It has jurisdiction to hear appeals against orders passed by SEBI, PFRDA, and IRDAI, as well as the adjudicating officer under the Companies Act in certain cases.
- SAT will have the same powers as vested in a civil court.
- The Tribunal acts as quasi-judicial authority and can uphold, modify, or set aside the orders passed by SEBI, PFRDA, or IRDAI.
- SAT has prescribed a time frame of 45 days to file cases against the authorities.
Decisions:
The decisions of the SAT are binding, but parties can appeal to the Supreme Court of India if they are dissatisfied with the Tribunal’s ruling.
Significance:
- Investor Protection: The SAT plays a crucial role in protecting investors’ interests by ensuring that regulatory actions are fair and justified.
- Regulatory Oversight: It provides a mechanism for accountability and oversight of the regulatory authorities, thereby enhancing the integrity of the financial markets.
- Dispute Resolution: It offers an efficient and specialised forum for resolving disputes related to securities, pensions, and insurance sectors.
Challenges:
- Complexity of Cases: Due to Evolving Market Dynamics, the complexity of financial disputes requires specialised knowledge and continuous skill updates.
- Limited Public Awareness: Many small investors and market participants are unaware of the SAT’s role and functions, affecting its accessibility.