Nirmala Sitharaman Tables Securities Markets Code Bill to Merge Key Market Laws

For increased transparency, simplicity, and strength of Indian stock and securities markets, Finance Minister Nirmala Sitharaman has moved the Securities Markets Code Bill, 2025, in the Lok Sabha on Thursday. Finance Minister Sitharaman has also proposed that this bill be referred to the Parliamentary Standing Committee for detailed discussions and scrutiny.

Members of Congress and DMK Members were opposing the bill because it gives too much power to a single entity, which is against the concept of separation of powers in a democratic setup. On this, the Finance Minister said that as the bill is being sent to the Standing Committee, all such discrepancies can easily be cleared there.

Under this bill, a common code will be developed through the merging of various existing laws. Various laws to be merged are: The SEBI Act (1992), TheDepositories Act (1996), and The Securities Contracts Act (1956). The government believes that the various laws created duplication and inconsistencies in regulations, causing difficulties for investors and companies. The new Securities Markets Code will make it easier for companies to comply with the law by having a unified set of rules.

Clarity in the regulatory framework will increase investor confidence. This bill will deepen the bond market and act as a safety net during market volatility. Government operations and oversight will be improved, leading to reduced trading costs. The parliamentary committee is expected to submit its report on the bill by the first day of the next session. The process of enacting it into law will then proceed.