Share Market News: India to Revamp Investment Landscape: Three Major Market Laws to Merge

The Indian government is on the cusp of introducing a transformative legislative reform aimed at modernizing its financial markets. The 'Securities Market Code Bill 2025' is set to consolidate three long-standing market laws into a single, comprehensive framework. This strategic move is designed to simplify existing regulations, streamline operations for investors, and Importantly enhance Foreign Direct Investment (FDI) inflows into the country. The overarching goal is to foster a more contemporary and transparent environment. For both the share and bond markets, thereby bolstering India's economic growth trajectory.

A Paradigm Shift in Market Regulation

The government's decision to merge three pivotal market laws into. A single code represents a paradigm shift in India's regulatory approach. The laws slated for consolidation under the 'Securities Market Code Bill 2025' are the SEBI Act of 1992, the Depositories Act of 1996, and the Securities Contracts (Regulation) Act of 1956, while these acts have historically formed the bedrock of India's capital markets, but their separate existence has often led to complexities and fragmentation. By bringing them under one unified umbrella, the government aims to create a cohesive regulatory landscape, making compliance simpler and more efficient for both companies and investors. This consolidation isn't merely an administrative exercise but a strategic leap towards aligning India's financial markets with global best practices.

Vision Behind the Consolidation

The 'Securities Market Code Bill 2025' is scheduled for introduction during the upcoming Winter Session of Parliament. This session is set to commence on December 1st and will conclude on December 19th. The timing of the bill's presentation underscores the government's commitment to expediting this crucial reform. Its introduction marks a significant legislative milestone, initiating a process of parliamentary debate and scrutiny. The successful passage of this comprehensive bill will be a landmark achievement for. India's financial sector, promising a more conducive and predictable investment environment for all stakeholders. The genesis of this significant reform can be traced back to the Union Budget for 2021-22, where Finance Minister Nirmala Sitharaman first announced the government's intention to consolidate these laws.