### India's Securities Markets Code Bill: A Step Towards Modernization and Efficiency The Indian government has introduced the Securities Markets Code Bill, 2025, aimed at consolidating and modernizing the existing securities laws. This initiative, led by Finance Minister Nirmala Sitharaman, seeks to replace outdated regulations with a unified framework that enhances regulatory governance and investor protection. The proposed bill is a significant move towards simplifying compliance and adapting to the evolving landscape of technology-driven financial markets. However, there are calls for strengthening the Securities and Exchange Board of India (Sebi) to ensure effective implementation and oversight of the new code [https://www.livemint.com/opinion/online-views/india-securities-market-code-sebi-securities-markets-code-bill-nirmala-sitharaman-11766319800076.html]. ### Structure of the Securities Markets Code Bill 1. **Consolidation of Existing Laws**: - The bill aims to repeal three major acts: the SEBI Act of 1992, the Depositories Act of 1996, and the Securities Contracts (Regulation) Act of 1956, creating a single legislative framework for securities markets [https://www.livemint.com/market/stock-market-news/centre-tables-securities-markets-code-2025-seeks-repeal-of-three-acts-to-create-a-single-framework-11766045587932.html]. 2. **Strengthening SEBI**: - The proposal includes increasing the SEBI Board's membership from 9 to 15 members, enhancing its governance and consultation processes [https://www.moneycontrol.com/news/business/markets/securities-market-code-bill-introduced-in-lok-sabha-here-are-major-proposed-reforms-13732773.html]. 3. **Investor Protection and Compliance**: - The bill adopts a principle-based approach to streamline compliance burdens and bolster investor protection, aiming to build trust in the financial system [https://newsarenaindia.com/business/govt-introduces-securities-markets-code-bill-in-lok-sabha/65209]. 4. **Referral to Parliamentary Committee**: - The bill has been proposed for referral to the Parliamentary Standing Committee on Finance for detailed examination, ensuring thorough scrutiny before implementation [https://www.devdiscourse.com/article/business/3734474-securities-markets-code-bill-poised-for-parliamentary-scrutiny]. ### Supporting Evidence and Data - **Legislative Changes**: The Securities Markets Code Bill will replace three decades-old acts, which have been criticized for being outdated in the context of modern financial practices [https://www.livemint.com/market/stock-market-news/centre-tables-securities-markets-code-2025-seeks-repeal-of-three-acts-to-create-a-single-framework-11766045587932.html]. - **Board Expansion**: The increase in SEBI Board members is expected to enhance governance and allow for a broader range of expertise in decision-making [https://www.moneycontrol.com/news/business/markets/securities-market-code-bill-introduced-in-lok-sabha-here-are-major-proposed-reforms-13732773.html]. - **Investor Confidence**: By simplifying compliance and enhancing regulatory oversight, the bill aims to foster greater investor confidence in the Indian securities market [https://www.devdiscourse.com/article/business/3734474-securities-markets-code-bill-poised-for-parliamentary-scrutiny]. ### Conclusion: A Promising Future for India's Securities Markets The introduction of the Securities Markets Code Bill, 2025, marks a pivotal moment in the evolution of India's financial regulatory framework. 1. **Unified Framework**: The consolidation of existing laws into a single code is expected to simplify compliance and enhance clarity for market participants. 2. **Strengthened Oversight**: Increasing the SEBI Board's size aims to improve governance and ensure that the regulatory body is well-equipped to handle the complexities of modern markets. 3. **Enhanced Investor Protection**: The bill's focus on investor protection and compliance is likely to build trust and encourage participation in the securities market. In summary, while the Securities Markets Code Bill holds significant promise for modernizing India's financial landscape, it is crucial to ensure that SEBI is adequately empowered to oversee its implementation effectively [https://www.livemint.com/opinion/online-views/india-securities-market-code-sebi-securities-markets-code-bill-nirmala-sitharaman-11766319800076.html].