New code to overhaul securities market rules

Bill to consolidate three laws, proposes stricter conflict norms for Sebi officials

- Apoorva Ajith

Finance minister Nirmala Sitharaman on Thursday tabled the Securities Markets Code 2025 Bill in the Lok Sabha to consolidate and simplify India's numerous securities rules, enhance the accountability of regulatory officials, and improve grievance redressal.

The proposed code merges the Securities and Exchange Board of India (Sebi) Act, 1992, the Depositories Act, 1996 and the Securities Contracts (Regulation) Act, 1956 into a unified statute. The government seeks to modernize regulation, strengthen investor protection and enable capital mobilisation at a scale aligned with the needs of a fast-growing economy, according to the legislation.

The Bill has been referred to the parliamentary standing committee on finance led by BJP lawmaker Bhartruhari Mahtab.

Currently, several provisions related to the securities market are spread across different acts and circulars. "There were too many laws and circulars. Now this has been consolidated. It was the need of the hour to make laws simpler and clearer," said Akshaya Bhansali, managing partner at Mindspright Legal.

The bill introduces provisions to increase the accountability of regulatory officials with fresh conflict of interest disclosures.