Securities Market Code Bill Aims to Elevate SEBI's Role

The Securities Market Code Bill, introduced in the Lok Sabha, seeks to strengthen SEBI's regulatory mechanisms by expanding its board and establishing a more transparent legislative framework. It aims to replace existing securities laws, enhance investor protection, and facilitate innovation in financial markets.

The Securities Market Code Bill, unveiled in the Lok Sabha, is set to reshape the regulatory landscape for SEBI by boosting its board size from nine to fifteen members. This move aims to enhance transparency and introduce a consultative approach in issuing subordinate legislation.

Key provisions of the Bill include requiring SEBI members to disclose any financial interests, thus preventing conflicts of interest. Additionally, it proposes granting SEBI powers to review its performance and make necessary amendments, fostering a dynamic and technologically advanced securities market.

Furthermore, the Bill aims to consolidate current securities laws, streamlining processes and eliminating outdated regulations. An enabling provision for a regulatory sandbox is also envisaged, promoting innovation in financial products while emphasizing investor protection, education, and grievance redressal.

(With inputs from agencies.)