Empowering SEBI: New Bill Aims to Fortify India's Securities Market

The Parliamentary Standing Committee on Finance recommends granting more preemptive powers to SEBI to navigate India's rapidly evolving securities market. The proposed Securities Market Code, 2025, aims to institute a rule-based system to enhance accountability, reduce compliance burdens, and strengthen SEBI's regulatory framework, as reiterated by Chairman Bhartruhari Mahtab.

The Parliamentary Standing Committee on Finance has called for empowering the Securities and Exchange Board of India (SEBI) with expanded authority to preemptively address potential crises in the fast-evolving securities market. BJP MP and committee chairman Bhartruhari Mahtab emphasized the necessity of a rule-based approach as part of the proposed Securities Market Code, 2025.

Following recent issues that raised calls for a more robust SEBI, the Bill proposes a less subjective, rule-based decision-making process to increase accountability. Mahtab noted the importance of this systematic approach following comprehensive consultations with various bodies, which resulted in over 1,000 suggestions for the government's consideration.

With the securities market continually adapting since the SEBI Act's inception in 1992, Mahtab highlighted the necessity for a robust, investor-friendly legal framework. The committee continues to deliberate on the bill with key finance and legal departments, aiming to submit its report by the onset of the monsoon parliamentary session.