Controversial Securities Market Code Bill Sparks Parliamentary Debate

Finance Minister Nirmala Sitharaman introduced the Securities Market Code Bill in the Lok Sabha, stirring debate over its proposed unification of existing securities regulations. Critics, including Arun Nehru and Manish Tewari, argue it consolidates excessive power. The discussion will be referred to a standing committee for further evaluation.

Finance Minister Nirmala Sitharaman introduced the Securities Market Code Bill in the Lok Sabha on Thursday, proposing its referral to a department-related standing committee for further deliberation. The bill aims to unify and streamline existing securities legislation.

Arun Nehru of the DMK and Congress's Manish Tewari opposed the bill at its introduction, expressing concerns over the consolidation of excessive powers in one body, which they believe undermines the principle of separation of powers. They labeled the bill a case of excessive delegation.

In response, Sitharaman emphasized that referring the bill to the standing committee would allow for detailed discussion. Krishna Prasad Tenneti, overseeing the proceedings, noted that the Lok Sabha Speaker holds the authority to refer bills to parliamentary committees for consideration. The bill seeks to merge the Securities and Exchange Board of India Act, the Depositories Act, and the Securities Contracts (Regulation) Act, bolstering investor protection and improving the ease of business in India's financial markets.

(With inputs from agencies.)