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Sitharaman's Big Move: Why the New Securities Code Bill Goes to Committee

Finance Minister Nirmala Sitharaman has introduced a new bill to streamline India's securities market regulations. She immediately proposed sending it to a parliamentary committee for deeper examination. The bill's goal is to combine several older laws into one clear and efficient code. This should make things easier for investors and help the markets run more smoothly.

Key Points: Nirmala Sitharaman Proposes Securities Markets Code Bill to Panel

  • Bill aims to merge four key securities laws into a single, simplified code
  • The consolidation seeks to reduce regulatory overlaps and inconsistencies for market participants
  • A unified framework is intended to strengthen investor confidence and market stability
  • The move was first announced during the Union Budget presentation for 2021-22
2 min read

FM Nirmala Sitharaman proposes to move Securities Markets Code Bill to parliamentary committee

Finance Minister Nirmala Sitharaman introduces a bill to consolidate securities laws, proposing it be sent to a parliamentary committee for review.

"Sir, I rise to move that the Bill be referred to the Parliamentary Standing Committee on Finance. - Finance Minister Nirmala Sitharaman"

New Delhi, December 18

Union Finance Minister Nirmala Sitharaman on Thursday introduced 'The Securities Markets Code Bill, 2025' in the Lok Sabha and proposed that the Bill be referred to the Parliamentary Standing Committee on Finance for further examination.

Speaking in the Lok Sabha after introducing the Bill, the Finance Minister moved a motion seeking its reference to the standing committee.

She said, "Sir, I rise to move that the Bill be referred to the Parliamentary Standing Committee on Finance. The Committee shall make a report by the first day of the next session, if the Speaker so decides."

The proposed Securities Markets Code Bill aims to consolidate and simplify India's securities market laws.

While presenting the Union Budget 2021-22 in Parliament, the Union Minister for Finance and Corporate Affairs announced the government's plan to merge multiple existing laws into a single, rationalised framework.

These include the SEBI Act, 1992, the Depositories Act, 1996, the Securities Contracts (Regulation) Act, 1956, and the Government Securities Act, 2007.

The objective of this consolidation is to bring greater clarity, consistency and efficiency to the regulation of India's securities markets.

By combining these Acts into a single Securities Markets Code, the government aims to reduce overlaps, remove inconsistencies and make compliance easier for market participants.

The move is also intended to strengthen investor confidence and improve the functioning of financial markets. A simplified legal framework is expected to support better governance, improve transparency and provide a more stable regulatory environment for investors and intermediaries.

According to the government, such a framework would help deepen the bond market and ensure smoother functioning during periods of volatility. Improved liquidity is also expected to lower borrowing costs and support long-term financing for businesses.

- ANI

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Reader Comments

S
Sarah B
As someone working in the financial sector, simplifying the legal framework is long overdue. The SEBI Act, Depositories Act, SCRA... it's a jungle. A single code should make compliance much easier for firms and ultimately benefit the end customer. Good move.
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Priya S
Sending it to the standing committee is the right thing to do. Such a major consolidation needs detailed scrutiny by MPs from all parties. My only request: please make the final code simple enough for a common person to understand, not just for lawyers and experts.
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Rohit P
The intention is good, but execution is key. We've seen big reforms get diluted in committees or become too complex. Hope they stick to the core goal of "simplification" and don't add more layers of bureaucracy. A stable market is good for everyone's savings.
K
Karthik V
If this deepens the bond market and lowers borrowing costs, it could be a game-changer for infrastructure and manufacturing. More long-term financing means more projects, more jobs. Fingers crossed the committee works fast and doesn't delay this unnecessarily.
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Michael C
A respectful criticism: While consolidation is welcome, the government must ensure this isn't just a rebranding exercise. The new code must genuinely empower regulators like SEBI with clear, unambiguous powers to act against market manipulation and protect small investors. The devil will be in the details the committee reviews.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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