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Informist, Thursday, Apr. 16, 2026

 

--Source: House panel to meet industry on securities mkt code bill on Apr 24

--Source:Securities mkt code significantly impacts intermediaries, listed cos

 

By Priyasmita Dutta and Shubham Rana

 

NEW DELHI – The Parliamentary Standing Committee on Finance has called a meeting with industry participants on Apr. 24 to discuss various provisions of the Securities Markets Code Bill, said a senior industry official who will be attending the meeting. The bill, which was introduced in the Lok Sabha in the Winter Session of Parliament, seeks to overhaul the securities regulations in India and consolidate provisions of three laws -- the Securities and Exchange Board of India Act of 1992, Depositories Act of 1996, and Securities Contracts (Regulation) Act, 1956.

 

The provisions of the code have significant implications for intermediaries and listed companies, the official told Informist. Representatives of the Associated Chambers of Commerce and Industry of India, the Federation of Indian Chambers of Commerce and Industry, and the Confederation of Indian Industry, among other associations, will participate in the meeting.

 

Finance Minister Nirmala Sitharaman had introduced the Securities Markets Code Bill in the Lok Sabha on Dec. 18, and it was immediately referred to the Parliamentary Standing Committee on Finance for further discussions. It proposes measures to simplify governance, ease compliance, strengthen investor protection, and improve inter-regulatory coordination. The bill envisages putting in place a statutory framework to strengthen SEBI and facilitate more efficient securities markets.

 

The bill has come to parliament after nearly four years from its announcement by Sitharaman in the Budget for 2021-22 (Apr-Mar). However, back then, she had announced the consolidation of four laws through the bill--the three mentioned and the Government Securities Act of 2007.

 

To strengthen the capital market regulator, the government, in the bill, has proposed increasing the number of SEBI board members to 15 from the current nine stipulated under the SEBI Act, and it has also proposed new grounds for the removal of board members if they acquire financial or other interests that prejudice their function. The bill also mandates that SEBI board members disclose any direct or indirect interests, including those of family members, related to the subject matter of the board meeting. It refrains the members from participating in the meetings where such interests exist.

 

The Securities Market Code Bill recognises the concept of market infrastructure institutions, which include stock exchanges, clearing corporations, and depositories. The central government can notify a new category of market infrastructure institutions, according to the bill.

 

The bill empowers the market infrastructure institutions to make bye-laws in line with current market practices and based on the principles laid out in the bill to ensure non-discriminatory access to its services, minimise market abuse, ensure interoperability with other market infrastructure institutions, and foster transparency. It also proposes mandating public consultation by SEBI, market infrastructure institutions, and the Centre for market regulations.

 

The bill suggests allowing SEBI to delegate some part of its registration function to market infrastructure institutions and self-regulatory organisations. The proposed bill also provides an enabling provision for the SEBI board to establish a regulatory sandbox to facilitate innovation in financial products, contracts and services.

 

For investor protection, the bill proposes that SEBI issue an investor charter that provides the principles for the protection of investors. It mandates SEBI to strengthen the grievance redressal mechanism for investors and designate one or more of its officers as ombudsperson to redress investor grievances effectively and in a time-bound manner.

 

To enhance the investment climate and market making, the bill provides an enabling framework for inter-regulatory coordination, wherein SEBI, in consultation with other regulatory authorities concerned, may make regulations for seamless listing of 'other regulated instruments'.  End

 

Edited by Ashish Shirke

 

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