New Bill pushes for larger SEBI board, stricter conflict of interest safeguards

Finance Minister Nirmala Sitharaman on Thursday tabled the Securities Markets Code (SMC), 2025, which replaces three existing laws, in Parliament. The Bill empowers the markets regulator Securities and Exchange Board of India (SEBI) to remove a board member for non-compliance, apart from laying down stricter conflicts of interest disclosure requirements. Commenting on the Bill, JSA Advocates & Solicitors’ partner Arka Mookerjee said, “The Securities Market Code marks a consolidation of three key regulations in the Indian securities market the SCRA, the SEBI Act and the Depositories Act. However, while this consolidation will likely help practitioners and the market alike, the details on subordinate legislation, namely the SEBI rules, regulations, circulars and guidelines, will remain to be seen.” Read more