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Sitharaman's Big Move: How the New Securities Code Could Reshape India's Markets

Finance Minister Nirmala Sitharaman has introduced a major new bill in Parliament. The Securities Markets Code Bill aims to combine several old laws into one simpler rulebook. This should make things clearer for everyone involved in the markets. The goal is to build stronger trust and make India's financial system work better for growth.

Key Points: Sitharaman Introduces Securities Markets Code Bill in Lok Sabha

  • Bill aims to merge SEBI Act and three other key securities laws into one code
  • Seeks to reduce regulatory overlaps and simplify compliance for market participants
  • Intended to strengthen investor confidence and improve market transparency
  • Expected to support bond market growth and lower borrowing costs for businesses
2 min read

Sitharaman introduced Securities Markets Code Bill in Lok Sabha, proposes to send it to parliamentary committee

Finance Minister Nirmala Sitharaman introduces a bill to consolidate securities laws, aiming for simpler regulation and stronger investor confidence in India's markets.

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

P
Priya S
Good move to send it to committee for detailed scrutiny. Financial laws need careful examination. My only concern is that the "simplification" should not dilute investor protections. SEBI has done a decent job so far, hope the new code strengthens its hand further.
R
Rohit P
As someone working in a brokerage, this is welcome news. Compliance is a nightmare with so many different acts and regulations. A single code will save so much time and cost. Hope they also use this chance to update some archaic provisions from the 1956 Act!
S
Sarah B
Interesting development. Streamlining regulations can definitely boost foreign investment if done right. The key will be in the implementation and whether it truly creates a more transparent environment. The committee must engage with a wide range of stakeholders, not just big players.
V
Vikram M
All sounds good on paper. But will it actually protect the common investor from market manipulators and frauds? That's the real test. We need stronger enforcement, not just new laws. Hope the committee focuses on practical safeguards for retail participants.
K
Karthik V
A respectful criticism: While consolidation is good, the government has a tendency to rush financial bills. Referring it to committee is the right first step, but the report deadline "by first day of next session" seems tight. Such a major code needs extensive debate, not a hurried timeline. Let's get it right.

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

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