The Securities Markets Code, 2025 was introduced in the Lok Sabha, marking a significant step in rationalising and consolidating India's fragmented securities law framework. The Code proposes to repeal and consolidate three landmark pieces of legislation: the Securities and Exchange Board of India (SEBI) Act, 1992; the Depositories Act, 1996; and the Securities Contracts (Regulation) Act, 1956 — all under a single unified statute.
The Code introduces major structural changes to SEBI's governance architecture. Most notably, it proposes expanding the SEBI Board from its current composition of 9 members to 15 members, with the objective of improving regulatory capacity, enhancing representation, and bringing in specialised expertise across market segments including equity, debt, derivatives, and commodities.
The bill has been referred to the Standing Committee on Finance for detailed parliamentary scrutiny and stakeholder consultations. This is consistent with the government's broader legislative consolidation drive, which has seen similar efforts in insurance (Insurance Amendment Bill), competition law (Competition Amendment Act 2023), and financial services regulation.
The consolidation is expected to reduce regulatory overlap and compliance burden for market participants, align India's securities laws with international best practices, and provide greater clarity on SEBI's mandate. The move comes at a time when India's capital markets have seen rapid expansion — the BSE and NSE collectively list over 5,000 companies, and investor accounts have crossed 150 million. The Code is seen as essential for building regulatory resilience and investor confidence as India aspires to become a global financial centre.