Revamping Regulatory Governance: The Impact of the Securities Markets Code Bill

The proposed Securities Markets Code (SMC) Bill aims to transform regulatory governance beyond the securities market across wider financial and administrative sectors. It seeks to consolidate and replace existing laws, promoting transparency, accountability, and efficiency while expanding Sebi's board and standardizing regulations.

A sweeping transformation in regulatory governance could be on the horizon with the introduction of the proposed Securities Markets Code (SMC) Bill. According to the Economic Survey 2025-26, this legislation could become a benchmark for governance across financial and administrative sectors if enacted effectively.

Highlighting the Bill's implications, the Survey emphasizes the potential to restore trust among regulators, market participants, and investors. The SMC Bill, introduced in the Lok Sabha, aims to consolidate three existing securities laws to create a robust framework focusing on transparency, independence, and investor protection.

Expanding the Sebi board and revising regulatory standards are pivotal aspects of the proposed Code. Under this Bill, Sebi must conduct periodic external evaluations of its regulations, ensuring proportionality and accountability. This framework could position India's regulatory model as a trailblazer in global financial oversight.