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22 Dec 2025·Source: The Indian Express
2 min
EconomyPolity & GovernanceEXPLAINED

Securities Markets Code Bill 2025: Strengthening SEBI's Regulatory Powers

Securities Markets Code Bill 2025 aims to enhance SEBI's regulatory authority.

Securities Markets Code Bill 2025: Strengthening SEBI's Regulatory Powers

Photo by Tyler Prahm

पृष्ठभूमि संदर्भ

Existing securities laws are fragmented and need streamlining to improve market regulation and investor protection.

वर्तमान प्रासंगिकता

The bill is relevant due to the increasing complexity of financial markets and the need for robust regulatory oversight.

मुख्य बातें

  • •The bill seeks to enhance SEBI's regulatory powers.
  • •It aims to consolidate existing securities laws.
  • •It proposes measures to improve enforcement and adjudication processes.

संबंधित अवधारणाएं

Securities and Exchange Board of India (SEBI)Insider TradingMarket Manipulation

The article discusses the proposed Securities Markets Code Bill, 2025, which aims to consolidate and strengthen the regulatory powers of the Securities and Exchange Board of India (SEBI). The bill seeks to replace existing securities laws with a single, comprehensive code, enhancing SEBI's ability to regulate market activities, protect investors, and promote market integrity.

The bill also proposes measures to improve enforcement and adjudication processes. This is relevant to UPSC as it touches upon Economy and Polity & Governance.

मुख्य तथ्य

1.

Securities Markets Code Bill, 2025 aims to consolidate securities laws.

2.

The bill seeks to strengthen SEBI's regulatory powers.

3.

It aims to improve enforcement and protect investors.

UPSC परीक्षा के दृष्टिकोण

1.

Role and functions of SEBI

2.

Regulatory framework for securities markets in India

3.

Investor protection mechanisms

4.

Impact of the bill on market efficiency and stability

दृश्य सामग्री

Evolution of SEBI's Regulatory Framework & the Securities Markets Code Bill 2025

This timeline illustrates key legislative and regulatory milestones that have shaped India's securities market, culminating in the proposed Securities Markets Code Bill 2025, which aims to consolidate and strengthen SEBI's powers.

The Indian securities market has undergone significant reforms since the 1991 liberalization. The establishment of SEBI as a statutory body in 1992 was a pivotal moment, driven by the need for robust regulation and investor protection. Subsequent legislative changes and SEBI's evolving regulations have continuously aimed to enhance market efficiency, integrity, and investor confidence. The proposed 2025 Bill represents the next major step in consolidating this framework.

  • 1988SEBI established as a non-statutory body.
  • 1991Economic Liberalization Reforms begin in India.
  • 1992Harshad Mehta Scam exposes market weaknesses; SEBI granted statutory powers via SEBI Act, 1992.
  • 1996Depositories Act enacted, paving the way for dematerialization of securities.
  • 2008Global Financial Crisis prompts increased focus on financial regulation and systemic risk management.
  • 2013Companies Act, 2013, introduces new provisions for corporate governance and investor protection.
  • 2021SEBI initiates discussions for moving to T+1 settlement cycle for equities.
  • 2023Full implementation of T+1 settlement cycle across all Indian equities.
  • 2024SEBI strengthens ESG disclosure norms for listed entities, promoting sustainable investing.
  • 2025Securities Markets Code Bill, 2025, proposed to consolidate laws and enhance SEBI's regulatory powers.

बहुविकल्पीय प्रश्न (MCQ)

1. Consider the following statements regarding the Securities and Exchange Board of India (SEBI): 1. SEBI was initially established as a non-statutory body and later gained statutory powers through an Act of Parliament. 2. SEBI's primary objective is to protect the interests of investors in securities and promote the development of the securities market. 3. SEBI regulates both the primary and secondary markets in India. Which of the statements given above is/are correct?

उत्तर देखें

सही उत्तर: D

All three statements are correct. SEBI was initially a non-statutory body established in 1988 and was given statutory powers in 1992 through the SEBI Act. Its objectives include investor protection and market development, and it regulates both primary and secondary markets.

2. The proposed Securities Markets Code Bill, 2025, aims to achieve which of the following? 1. Consolidation of existing securities laws into a single comprehensive code. 2. Reduction in SEBI's regulatory powers to promote market liberalization. 3. Enhancement of SEBI's enforcement and adjudication processes. Which of the statements given above is/are correct?

उत्तर देखें

सही उत्तर: B

The bill aims to consolidate securities laws and enhance SEBI's powers, not reduce them. Therefore, statements 1 and 3 are correct, while statement 2 is incorrect.

3. In the context of securities markets, what is the primary purpose of 'insider trading' regulations?

उत्तर देखें

सही उत्तर: B

Insider trading regulations aim to prevent individuals with access to non-public, material information from using that information to gain an unfair advantage in the market. This ensures fairness and equal access to information for all participants.

4. Which of the following committees is/are associated with reforms in the Indian securities market? 1. Narasimham Committee 2. Uday Kotak Committee 3. N.R. Narayana Murthy Committee Select the correct answer using the code given below:

उत्तर देखें

सही उत्तर: D

All three committees are associated with reforms in the Indian financial sector. The Narasimham Committee focused on banking sector reforms, the Uday Kotak Committee on corporate governance, and the N.R. Narayana Murthy Committee also on corporate governance.

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