Union Finance Minister Nirmala Sitharaman on Thursday (18 December 2025) introduced the Securities Markets Code Bill, 2025 in the Lok Sabha and proposed that it be referred to the Parliamentary Standing Committee on Finance for detailed examination. The Bill seeks to consolidate and amend existing securities market laws with the aim of strengthening regulation, improving investor protection and enhancing ease of doing business in India's capital markets.

The proposed Code adopts a principle-based approach, simplifies legal language and strengthens SEBI's powers and governance framework. It streamlines enforcement by introducing a single adjudication process with defined timelines, converts minor offences into civil penalties, and restricts criminal liability to serious violations such as market abuse. The Bill also proposes an ombudsperson for investor grievance redressal, mandates disclosure of conflicts of interest by SEBI board members, enables a regulatory sandbox for innovation, and promotes greater transparency in framing regulations.

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