Panel Seeks Clearer SEBI-RBI Role Division in Securities Markets Code
UPSC / SSC current affairs note · Economy
Why in news
The Parliamentary Standing Committee on Finance has recommended a clearer division of regulatory roles between SEBI and RBI in the Securities Markets Code, 2025. This aims to avoid regulatory overlap and provide certainty in the securities market.
Background
The Securities Markets Code, 2025 is a proposed legislation to consolidate and amend laws related to securities markets. Currently, SEBI and RBI have overlapping jurisdictions in areas like derivatives and debt markets, leading to regulatory uncertainty.
Key facts
The Parliamentary Standing Committee on Finance recommended a clearer division of regulatory roles between SEBI and RBI.
The recommendation is part of the review of the Securities Markets Code, 2025.
The panel advocates for an activity-based approach to define regulatory boundaries.
The goal is to avoid regulatory overlap and provide certainty to market participants.
The code aims to consolidate and amend laws related to securities markets.
Prelims pointers
- Parliamentary Standing Committee on Finance
- Securities Markets Code, 2025
- SEBI (Securities and Exchange Board of India)
- RBI (Reserve Bank of India)
- Activity-based regulation
Mains angles
- Discuss the need for clear division of regulatory roles between SEBI and RBI in the securities market.
- Examine the implications of regulatory overlap on market efficiency and investor confidence.
- Analyze the proposed activity-based approach in the Securities Markets Code, 2025.