Parliamentary Panel Backs Stronger SEBI Powers Under Proposed Securities Markets Code

The Parliamentary Standing Committee on Finance stated that SEBI needs enhanced powers to deal with any issues that may arise in the fast-growing Indian securities market. The rule-based approach is crucial for improving accountability in the regulatory body once the proposed Securities Markets Code 2025 is introduced, said BJP member of parliament and committee chairman Bhartruhari Mahtab. The committee has been discussing the proposed legislation, whose primary objective is to create a pro-investor market environment.

As observed by Mahtab, there has been very rapid growth of the economy in India; therefore, it becomes necessary for SEBI to get more powers in order to prevent crises. As per Mahtab, the bill targets a rule-based and less subjective decision-making process and will be instrumental in increasing accountability in SEBI. The bill was tabled in the Lok Sabha in December and referred to a committee. The committee received 1,055 recommendations and forwarded them to the government.

Mahtab said that since the enactment of the SEBI Act in 1992, the country's securities market has been continuously evolving and facing new challenges. More and more middle-class individuals are investing. A strong law is necessary to protect investors and make the system more investor-friendly. The government has introduced this bill with this in mind. It combines three existing acts.