๐๐ซ๐ข๐๐ฎ๐ง๐๐ฅ๐ฌ ๐๐๐๐จ๐ซ๐ฆ๐ฌ ๐๐ข๐ฅ๐ฅ, 2026: ๐๐ก๐๐ญ ๐๐ญ ๐๐๐๐ง๐ฌ ๐๐จ๐ซ ๐๐๐ ๐๐ง๐ ๐๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐๐ฐ
The Lok Sabha passed the Tribunals Reforms Bill, 2026, on 10 August 2026, amid Opposition protests and without debate. The Bill now awaits consideration and passage by the Rajya Sabha, and Presidential assent, before it comes into force. It seeks to replace the Tribunals Reforms Act, 2021, and establish a National Tribunals Commission (NTC) as the central institutional framework for the appointment, administration and oversight of tribunals.
For securities-law practitioners, the Bill has a particularly important implication โ the Hon’ble Securities Appellate Tribunal (SAT) will now come within this new framework. The Bill brings all 16 ๐๐ซ๐ข๐๐ฎ๐ง๐๐ฅ๐ฌ ๐ฎ๐ง๐๐๐ซ ๐ข๐ญ๐ฌ ๐ ๐ข๐ซ๐ฌ๐ญ ๐๐๐ก๐๐๐ฎ๐ฅ๐ within the NTC’s ambit: ๐๐๐๐๐๐, ๐ญ๐ก๐ ๐๐๐ ๐๐๐ ๐๐ฉ๐ฉ๐๐ฅ๐ฅ๐๐ญ๐ ๐๐ซ๐ข๐๐ฎ๐ง๐๐ฅ, ๐๐๐, ๐๐ญ๐๐ญ๐ ๐๐๐ฆ๐ข๐ง๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐ฏ๐ ๐๐ซ๐ข๐๐ฎ๐ง๐๐ฅ๐ฌ (๐๐๐๐ฌ), ๐ญ๐ก๐ ๐๐๐ข๐ฅ๐ฐ๐๐ฒ ๐๐ฅ๐๐ข๐ฆ๐ฌ ๐๐ซ๐ข๐๐ฎ๐ง๐๐ฅ (๐๐๐), ๐๐๐, ๐๐๐, ๐๐๐๐, ๐๐๐๐๐, ๐๐๐๐๐, ๐๐ ๐, ๐๐๐, ๐๐๐๐๐, ๐๐๐๐๐, ๐ญ๐ก๐ ๐๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ข๐๐ฅ ๐๐ซ๐ข๐๐ฎ๐ง๐๐ฅ (๐๐๐ง๐ญ๐ซ๐๐ฅ ๐๐จ๐ฏ๐๐ซ๐ง๐ฆ๐๐ง๐ญ), ๐๐ง๐ ๐๐๐๐.
Section 4 of the Bill assigns the NTC four key functions: conducting the selection process for Chairpersons and Members of tribunals; reviewing tribunal performance and preparing annual reports; overseeing inquiries into complaints against tribunal members; and developing and maintaining a National Tribunals Data Grid.
The Bill also proposes to substitute Section 15QA of the SEBI Act, 1992.Consequently, the qualifications, selection, appointment, remuneration, resignation, removal and reappointment of the Presiding Officer and Members of SAT will be governed by the proposed Tribunals Reforms Act, rather than the Securities and Exchange Board of India (SEBI) Act’s existing framework.
This is a significant structural shift. The Bill seeks greater uniformity in tribunal administration, with Chairpersons serving five years or until 70, and Members five years or until 67.
The Bill follows the Hon’ble Supreme Court’s ruling in ๐๐๐๐ซ๐๐ฌ ๐๐๐ซ ๐๐ฌ๐ฌ๐จ๐๐ข๐๐ญ๐ข๐จ๐ง ๐ฏ. ๐๐ง๐ข๐จ๐ง ๐จ๐ ๐๐ง๐๐ข๐ (2025 ๐๐๐๐ 1330), which struck down key provisions of the 2021 Act for violating separation of powers and judicial independence, and directed the Centre to constitute the NTC. Yet appointments to the NTC itself remain with the Central Government, albeit in consultation with the Chief Justice of India for its Chairperson and Judicial Members.
Therefore, the real measure of reform will not be merely the creation of the NTC, but whether it delivers independent appointments, continuity, institutional capacity and timely adjudication at SAT.
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