The Central government will seek the passage of the new Securities Market Code during the upcoming monsoon session of Parliament, aiming to modernize capital market regulations. The code consolidates three existing laws—the Securities Contracts (Regulation) Act, the Securities and Exchange Board of India Act, and the Depositories Act—into a single framework, according to livemint.com.
The new code is designed to simplify compliance and strengthen investor protection by replacing the seven-decade-old Securities Contracts (Regulation) Act along with the other two laws. This legislative move is part of a broader effort to update the regulatory framework governing India’s securities markets. The government’s plan was reported by Gireesh Chandra Prasad on livemint.com on June 1.
This consolidation marks a significant regulatory reform in India’s capital markets, which have traditionally been governed by multiple overlapping laws. By streamlining regulations, the code aims to enhance market efficiency and transparency. The move aligns with global trends where regulators are updating frameworks to address evolving market dynamics and investor needs.
The Securities Market Code is scheduled for consideration in the monsoon session of Parliament, which begins in July. The government has indicated that additional reforms in the securities market may follow, underscoring a continued focus on regulatory modernization, as reported by livemint.com.