Finance Minister Nirmala Sitharaman introduced the Securities Markets Code Bill, 2025, in Lok Sabha to consolidate and simplify market laws. The bill, which merges acts like the SEBI Act, has been referred to a standing committee for review.
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."
Aims of the Securities Markets Code Bill
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.
Expected Benefits and Impact
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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