BackGovernment may set up appellate tribunal for financial sector
The Securities Appellate Tribunal deals only with securities cases, but there could be an FSAT for all financial services: law secretary P.K. Malhotra
Premium
New Delhi: The government on Tuesday said it is considering having a single appellate tribunal for the financial sector.
Law secretary P.K. Malhotra said that a Financial Sector Appellate Tribunal (FSAT) was under consideration.
The Securities Appellate Tribunal (SAT) deals only with securities cases, but there could be an FSAT for all financial services, Malhotra said at a law ministry press conference.
This suggestion first came from the Financial Sector Legislative Reforms Commission in March 2013. The B.N. Srikrishna-led commission recommended FSAT as an appellate tribunal for all financial regulators—Insurance Regulatory and Development Authority (Irda), capital markets regulator Securities and Exchange Board of India (Sebi) and Pension Fund Regulatory and Development Authority (PFRDA).
In 2014, the government promulgated an ordinance that allowed Irda appeals to be brought before SAT. Later, it was accepted as law by the Parliament by way of the Insurance Laws (Amendment) Act 2015, passed last March.
The PFRDA rules were changed to bring appeals against the authority’s orders before SAT.
J.N. Gupta, a former executive director of Sebi and founder of SES Governance, said that any centralized tribunal for redressal was a good idea.
“The issue is the quality of people you put there (on the tribunal). The objective of having a centralized appellate tribunal is a good idea, but it has to work," he said.
Meanwhile, law minister Sadananda Gowda said the position of chairperson of the Law Commission of India would be filled within this week.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
