The Securities Appellate Tribunal's (SAT) case backlog has reached a six-year high of 1,066 cases in FY26, representing an 11% increase from the previous year and 122.5% higher than the 479 cases pending in FY20, according to Sebi's annual reports. This dramatic surge in pending cases is primarily driven by cases carried forward from previous years rather than new filings, as fresh appeals actually declined to 429 in FY26 from 533 in FY25. As per Mint, the divergence indicates that the tribunal's current workload is being driven less by new filings than by cases carried forward from previous years, with disposals also slowing significantly.
Appeals filed against Securities and Exchange Board of India (Sebi) orders before the Securities Appellate Tribunal (SAT) fell to 429 in 2025-26 from 533 a year ago, according to Sebi's annual report for the fiscal year. The decline in fresh filings coincided with a sharp fall in settlement collections, which plunged to ₹109.8 crore from ₹798.9 crore in FY25. The market regulator's settlement applications also decreased to 439, down from 703 in the previous year. However, appeals dismissed fell to 135 in FY26, less than half the number dismissed in FY25, highlighting the tribunal's reduced capacity to clear its accumulated workload.
The rising pendency is attributed to persistent shortage of judicial and technical members at SAT, which limits the number of benches that can operate simultaneously. "The primary reason is a persistent shortage of judicial and technical members, which limits the number of benches that can sit and hear matters," said Alay Razvi, managing partner at Accord Juris. The current bench comprises Justice P.S. Dinesh Kumar as presiding officer, Dr. Dheeraj Bhatnagar as technical member and Meera Swarup as technical member. In 2024, the position of presiding officer remained vacant for more than three months after Justice Tarun Agarwala retired in December 2023, with Meera Swarup being the only technical member on the bench. The need for greater capacity has been flagged by the judiciary, with then Chief Justice D.Y. Chandrachud calling for more SAT benches due to rapid market growth and high volume of financial transactions.
The backlog includes significant cases that have carried over across multiple years, limiting the extent to which declining fresh filings can reduce overall pendency. For instance, in 2022, Sebi alleged that Bombay Dyeing & Manufacturing Company Ltd and its promoters had misrepresented financial statements, barring 10 entities and imposing cumulative penalties of ₹15.75 crore. However, in January 2026, four years after the Sebi order, SAT set aside the penalties and directed refunds within four weeks. The cost of delays extends beyond tribunal dockets, with prolonged litigation increasing legal and advisory expenses and creating uncertainty about financial exposure. As Yogesh Chande from Shardul Amarchand Mangaldas noted, prolonged pendency may result in individuals losing employment and difficulty securing new opportunities, particularly affecting smaller investors and entities.
Despite the backlog challenges, SAT significantly increased its scrutiny of Sebi orders in FY26, overturning 47 orders compared to 23 in the previous year, while modifying orders also more than doubled to 88 from 42. As per The Hindu BusinessLine, SAT received 429 appeals during the year, disposed of 323 appeals, yet pending appeals increased to 1,066 at the end of March 2026 from 960 a year ago. Of the appeals disposed of, 148 related to matters under the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) and insider trading regulations, according to Sebi's annual report. Legal experts note that SAT is examining whether Sebi's conclusions are sufficiently tied to evidence, whether directions are proportionate, and whether each noticee's role is individually established.
