New Securities Markets Code Bill Set for Winter Session: Government Pushes for Unified Market Regulation

New Securities Markets Code Bill Set for Winter Session: Government Pushes for Unified Market Regulation

Union Government is preparing for a major reform in India’s financial market framework with the introduction of the Securities Markets Code Bill 2025 in the upcoming Winter session of Parliament, beginning December 1.

The New Securities Markets Code Bill has been officially listed on the agenda, according to a bulletin issued by the Lok Sabha Secretariat.

ALSO READ:- SEBI Warns Investors Against Unregulated ‘Digital Gold’ Offers on Online Platforms

The Securities Markets Code aims to bring together multiple decades-old financial market laws into a single, unified regulatory framework. It proposes the merger of the Securities and Exchange Board of India (SEBI) Act, 1992, the Depositories Act, 1996, and the Securities Contracts (Regulation) Act, 1956 into one consolidated legislation.

This approach is expected to significantly improve the ease of doing business for participants across the securities ecosystem by reducing overlapping provisions and simplifying compliance.

The idea of a unified securities code was first announced in the Union Budget 2021–22 by Finance Minister Nirmala Sitharaman. At that time, the government highlighted the need to rationalise market-related laws and consolidate the SEBI Act, Depositories Act, Securities Contracts (Regulation) Act, and the Government Securities Act, 2007 — a step that has now moved closer to becoming reality.

Experts believe the proposed code could cut compliance costs for market intermediaries and eliminate friction between rules framed by SEBI, government regulators, and depositories.

ALSO READ:- SEBI Warns Investors Against Unregistered Online Bond Platforms — Caution to Public to Verify Before Investing

They also note that incorporating the Government Securities Act into the unified code may increase the credibility of India’s sovereign borrowing and attract greater foreign capital participation.

As the Winter session approaches, market participants, investors, and regulatory bodies will keenly watch the progress of the Bill, which could mark a significant milestone in the evolution of India’s capital markets.