Securities Markets Code Bill Poised for Parliamentary Scrutiny

Union Finance Minister Nirmala Sitharaman has introduced the Securities Markets Code Bill in the Lok Sabha. The bill, aiming to streamline and consolidate India's securities laws, is proposed for examination by the Parliamentary Standing Committee on Finance, potentially enhancing market efficiency and investor confidence.

On Thursday, Union Finance Minister Nirmala Sitharaman presented the Securities Markets Code Bill, 2025, before the Lok Sabha, advocating for its review by the Parliamentary Standing Committee on Finance to ensure a thorough examination of the proposed legislation.

During her address in the Lok Sabha, Sitharaman articulated the necessity of referring the bill to the standing committee, asserting, "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 legislation aims to consolidate existing laws, including the SEBI Act, 1992, and the Government Securities Act, 2007, into a unified Securities Markets Code, with the goal of streamlining regulatory processes, enhancing investor confidence, and improving the financial markets' functioning.

This strategic merger seeks to eliminate regulatory overlaps and inconsistencies, facilitate compliance for market participants, and foster a more transparent and stable investment climate. Additionally, it aims to invigorate the bond market, reduce borrowing costs, and support long-term business financing, providing a robust framework for economic growth.

(With inputs from agencies.)