The introduction of the proposed Securities Markets Code, 2025 (the “Code”) as a Bill in Lok Sabha on December 18, 2025, represents a landmark effort to consolidate and modernize India’s securities laws. This legislative proposal seeks to repeal and replace three core statutes i.e. the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996, with the aim of creating a more streamlined, efficient, and robust regulatory framework. While the proposed legislation introduces several commendable reforms, such as statutory limitation periods for investigations, a gain-based penalty philosophy, and designated Ombudsperson, a detailed examination of the Bill reveals critical areas that require further refinement. Ambiguities in drafting, potential procedural loopholes, and gaps in investor protection mechanisms within the current draft could undermine the Code’s intended objectives.
The analysis identifies specific provisions within the proposed Code that warrant reconsideration and proposes targeted amendments to enhance clarity, ensure fairness, and fortify the integrity of India’s capital market.
Read the article here: analysis-of-the-securities-markets-code-2025.pdf