Finance Minister Nirmala Sitharaman today tabled the Securities Markets Code Bill, 2025 in Lok Sabha today. The Bill aims to consolidate and amend the laws related to the securities market and put in place a unified legislative framework for the same.

It proposes repealing the Securities and Exchange Board of India Act, 1992, the Depositories Act, 1996, and the Securities Contracts (Regulation) Act, 1956.

“The Securities Markets Code, 2025 seeks to repeal the three Acts, rationalises and consolidates the existing provisions and provides a modern regulatory framework for investor protection and capital mobilisation at a scale commensurate with the emerging needs of the fast-growing Indian economy,” finance minister Nirmala Sitharaman said in the statement of purpose of the bill.

Congress MPs opposed the introduction of the Bill. Finance minister Nirmala Sitharaman said that at this stage of the introduction, the bill will be sent over to the Standing Committee to do a complete review of the bill.

“From all the points I have looked at, they are very clearly the matters which can be extensively debated in the standing committee. None of them pertain to the legislative competence in bringing this Bill,” she added. 

“The Code endeavours to build a principle-based legislative framework to reduce compliance burden, improve regulatory governance and enhance dynamism of the technology-driven securities markets,” she added.  

“The language of the Code has been simplified to remove obsolete and redundant concepts, to duplication of provisions and incorporate consistent regulatory procedures for standard processes, and to ensure a uniform and streamlined framework of Securities Laws,” she said.  

“The Code is expected to further develop the financial sector in general and securities markets in particular and make India self-reliant in terms of mobilising capital for productive investment,” Sitharaman added.

According to the statement, the Code seeks to strengthen the regulatory mechanism of the “Board” by providing a transparent and consultative process for issuing any subordinate legislation. It also requires periodic review of such regulations for their proportionate and effective implementation and regulatory impact assessment studies.

The Code seeks to eliminate conflict of interest by requiring the Members of the “Board” to disclose any “direct or indirect” interest while participating in decision-making. “It enables the “Board” to maintain a reserve fund and transfer the surplus, if any, to the Consolidated Fund of India. It streamlines the adjudication procedure and ensures that all quasi-judicial actions are undertaken through a single adjudication process after an appropriate fact-finding exercise,” it added.  

“The Code maintains an arm’s length separation between inspection or investigation and adjudication proceedings and defines timelines for investigations and interim orders for a time-bound completion of the enforcement process,” it added.