Finance Minister Tables Securities Market Code Bill 2025 to Unify Capital Market Laws
Finance Minister Nirmala Sitharaman introduced the Securities Market Code Bill 2025 in the Lok Sabha, which seeks to consolidate three major laws: the SEBI Act (1992), the SCRA (1956), and the Depositories Act (1996). The Bill aims to provide a modern regulatory framework, rationalize existing provisions, and facilitate the ease of doing business. Key proposals include increasing SEBI board members to 15 and decriminalizing minor technical violations, replacing them with civil penalties. The Bill has been referred to the Standing Committee on Finance for further review.
Key Points
- The Bill consolidates the SEBI Act 1992, Securities Contracts (Regulation) Act 1956, and Depositories Act 1996.
- It proposes increasing the number of SEBI members from nine to 15, including the Chairperson.
- Minor and procedural violations will be decriminalized and shifted to a civil penalty framework.
- The Bill mandates board members to disclose any direct or indirect interests to prevent conflicts of interest.
Exam Facts
- The Bill consolidates three laws: SCRA 1956, SEBI Act 1992, and Depositories Act 1996.
- The proposed number of SEBI members is 15.
- No inspection can be done if eight years have passed from the date of a contravention.
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