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Securities Markets Code to Bring 'Very Big Reform' in India's Capital Markets

The Securities Markets Code, a unified framework to replace the Securities Contracts (Regulation) Act and Depositories Act, is in its final stages. Finance Ministry official Deepak Ranjan stated it will be a "very big reform" and is expected to be introduced soon. The government is engaging in a two-way consultation process with SEBI and stakeholders to build the framework. The code will include periodic reviews every 3-5 years to remain dynamic and responsive to market conditions.

Key Points: Securities Markets Code: India's 'Very Big Reform' Nears Final Stage

  • Securities Markets Code in final stages
  • Aims to repeal SCRA and Depositories Act
  • Consultations with SEBI and stakeholders ongoing
  • Framework to include periodic reviews every 3-5 years
2 min read

Securities Markets Code in final stages, aims to bring 'very big reform': Finance Ministry official

Finance Ministry official Deepak Ranjan says the Securities Markets Code, replacing old laws, is in final stages and aims to be a 'very big reform' for India's markets.

"We hope that this is a very big reform of our kind, which we are going to do. - Deepak Ranjan"

New Delhi, May 8

The upcoming Securities Markets Code, aimed at overhauling India's securities market regulations, will be a "very big reform" and is likely to be introduced soon, Finance Ministry officials said Friday.

"We hope that this is a very big reform of our kind, which we are going to do. We are on it, and most likely it will be very soon," said Deepak Ranjan, Director (Financial Markets), Department of Economic Affairs, under the Union Ministry of Finance. He made the remarks addressing the PHD Chamber of Commerce and Industry's (PHDCCI) 8th Annual Convention on Capital Market and Commodity Market with a theme Democratising Wealth Creation: Inclusive Capital Market for a Prosperous India'.

Ranjan said the government plans to repeal the Securities Contracts (Regulation) Act and the Depositories Act and replace them with a new unified framework called the Securities Markets Code.

"The Securities Contracts (Regulation) Act and Depositories Act will be repealed, and a new law will be introduced called the Securities Markets Code," he said.

He added that the government is working closely with the Securities and Exchange Board of India (SEBI) and other stakeholders on the proposed framework, with consultations currently underway.

"The government is trying to build a proper consultation process with SEBI, which is still going on. The process of building the framework will not be a one-way process; it will be a two-way process," Ranjan said.

He further said the government intends to adopt a collaborative and flexible approach while framing the legislation, with periodic reviews built into the framework.

"We will do a consultation with the market, we will take suggestions from you, we will consider it, we will make any changes. And there will be a periodic review on it, every 5 years, every 3 years," he said.

Ranjan noted that several reforms have also been incorporated into the proposed Securities Markets Code to make the regulatory framework more dynamic and responsive to evolving market conditions.

He added, "So, this type of arrangement has been put in the Securities Markets Code, and many other reforms have also been incorporated into it."

- ANI

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Reader Comments

P
Priya S
Big reform sounds promising but I'll believe it when I see it. The consultation process is key - hope they genuinely listen to small investors and not just big institutional players. Periodic reviews every 3-5 years is a good move though.
J
James A
As a foreign investor watching Indian markets, this is exciting. A modern, consolidated code could make India even more attractive for capital inflows. Fingers crossed it's implemented well.
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Ravi K
The 'democratising wealth creation' theme is music to my ears! But we need stronger investor protection too. Hope the code addresses issues like insider trading and market manipulation more effectively. Sab ka saath, sab ka vikas in capital markets! 🙏
S
Sarah B
Good to see the government moving towards consolidation. But 3-5 year periodic reviews feel a bit too frequent - markets need stability. Still, two-way consultation is a welcome approach. Let's see the draft first.
K
Kavya N
As a young investor who started during COVID, I really hope this code makes things easier for retail investors. The current regulations are too complex for common people like us who want to invest in mutual funds and stocks. Make it simpler, ji! 😊

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