The Securities Markets Code, 2025 represents one of the most significant reforms in India's capital market regulatory architecture in recent decades. Introduced in Parliament in 2025, the Code seeks to consolidate three foundational laws — the Securities and Exchange Board of India (SEBI) Act, 1992; the Securities Contracts (Regulation) Act (SCRA), 1956; and the Depositories Act, 1996 — into a single, unified legislative framework.

The Code has been referred to the Parliamentary Standing Committee on Finance for detailed scrutiny. This is in line with best legislative practice for complex financial legislation, allowing experts and stakeholders to provide inputs before the Bill is finalised.

A key structural change proposed under the Code is the expansion of the SEBI Board from 9 members to 15 members. This expansion is aimed at improving governance, bringing greater diversity of expertise, and strengthening the regulator's capacity to oversee India's increasingly complex capital markets.

By consolidating the three Acts, the Code aims to eliminate overlaps, resolve inconsistencies, and create a more coherent legal environment for securities markets. The unified framework is expected to make compliance easier for market participants, reduce regulatory arbitrage, and provide a clearer dispute resolution mechanism.

This reform comes at a time when India's capital markets have grown significantly in depth and breadth, with a surge in retail investor participation, growth in derivatives trading, and expansion of the depository ecosystem. A modernised, consolidated law is seen as essential to maintaining investor confidence and global competitiveness.

The Standing Committee's review will examine the implications of the SEBI Board expansion, the merger of regulatory frameworks, and the transition provisions for existing market participants. Its recommendations are expected to shape the final form of this landmark legislation.