The Indian government has taken a significant step towards overhauling the country's capital markets regulatory architecture. On 18 December 2025, the Centre tabled a crucial bill in Parliament aimed at creating a unified, single framework for all securities laws.
Key Provisions of the Proposed Securities Code
The proposed legislation, known as the Securities Code Bill, seeks to consolidate and replace multiple existing laws governing the securities market. The primary objective is to streamline regulations, reduce complexity, and create a more robust legal foundation for India's rapidly growing financial markets. This move is seen as a major reform to enhance ease of doing business and boost investor confidence.
Major Expansion of SEBI's Governing Board
A central and notable feature of the bill is the proposed expansion of the Securities and Exchange Board of India's (SEBI) composition. The bill recommends increasing the strength of the market regulator's board from the current 9 members to 15 members. This expansion is intended to bring in a wider array of expertise and perspectives to oversee the increasingly complex and diverse Indian securities market, which encompasses stocks, bonds, derivatives, and new-age investment products.
The need for a larger board is driven by the market's exponential growth and the emergence of new challenges, including those posed by technological advancements and global financial integration. A broader board composition is expected to help SEBI in its regulatory and developmental roles more effectively.
Implications and the Road Ahead
The introduction of this bill marks the beginning of the legislative process. It will now be scrutinized by parliamentary committees and debated in both houses before it can be enacted into law. If passed, the unified code will simplify compliance for market participants and could potentially lead to more agile and proactive regulation.
Financial experts view this as a forward-looking reform. Consolidating regulations under a single framework, coupled with a strengthened SEBI board, aims to future-proof the regulatory environment. This is crucial for attracting long-term domestic and foreign investments and maintaining the stability and integrity of India's financial system. The bill, tabled by the Centre, represents a pivotal moment in the evolution of India's capital market governance.
