India to Boost Investor Protection with Securities Markets Code 2025

The Indian government is set to introduce a new Securities Markets Code merging existing regulations into a unified framework. This aims to enhance investor protection, streamline compliance, and foster innovation. The proposed Code also seeks to modernize the regulatory environment and improve transparency in financial markets.

The Indian government is preparing to introduce a bill in Parliament aiming to significantly strengthen investor protection and enhance the ease of doing business in the nation's financial sector. During the ongoing winter session, set to conclude on December 19, the Securities Markets Code Bill 2025 will be deliberated.

The proposed legislation intends to consolidate the Securities and Exchange Board of India Act, 1992, the Depositories Act, 1996, and the Securities Contracts (Regulation) Act, 1956 into a single comprehensive Code. The move is anticipated to modernize regulatory practices to align with the evolving needs of India's fast-growing economy.

A key element of the Bill is the fortification of investor protection, promoting investor education, and ensuring timely redressal of grievances through the establishment of an Ombudsperson. Additionally, the Code introduces a Regulatory Sandbox to foster innovation and aims for enhanced regulatory governance through transparent and consultative legislative procedures.

(With inputs from agencies.)