Securities Markets Code 2025: Simplifying Laws, Protecting Small Investors
UPSC / SSC current affairs note · Economy
Why in news
The Parliamentary panel on Finance, chaired by Bhartruhari Mahtab, has submitted its report supporting the Securities Markets Code, 2025. The code aims to consolidate and simplify securities market laws while enhancing investor protection, especially for small investors.
Background
The Securities Markets Code, 2025 is a proposed legislation to replace multiple existing laws governing the securities market, such as the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India Act, 1992, and the Depositories Act, 1996. The move is part of the government's efforts to streamline regulations and improve ease of doing business.
Key facts
The Securities Markets Code, 2025 aims to simplify and consolidate securities market laws.
The code seeks to strengthen protection for small investors.
The Parliamentary panel, chaired by Bhartruhari Mahtab, has submitted its report supporting the code.
The committee has recommended a longer cooling-off period for investors.
The committee also recommended a longer investigation timeline for market offenses.
The code is expected to replace multiple existing laws, including the SEBI Act, 1992.
Prelims pointers
- Securities Markets Code, 2025
- Parliamentary Panel on Finance
- Bhartruhari Mahtab
- SEBI Act, 1992
- Securities Contracts (Regulation) Act, 1956
- Depositories Act, 1996
- Cooling-off period
- Investor protection
Mains angles
- Discuss the need for consolidation of securities market laws in India.
- Evaluate the impact of the Securities Markets Code, 2025 on investor protection and market efficiency.
- Analyze the role of parliamentary committees in shaping financial sector reforms.