Parliamentary Panel Backs Stronger SEBI Powers Under Securities Market Code 2025

The Parliamentary Standing Committee on Finance has supported granting greater powers to the Securities and Exchange Board of India (SEBI) under the proposed Securities Market Code, 2025, as part of efforts to strengthen market oversight and investor protection.

Committee Chairman Bhartruhari Mahtab said the securities market is evolving rapidly and requires a regulatory framework that enables SEBI to act before crises emerge. He indicated that the committee is examining the regulator’s powers, the role of tribunals, and mechanisms to improve accountability through a rule-based decision-making framework. The proposed legislation seeks to consolidate existing securities laws while reducing compliance burdens, improving regulatory governance, and supporting technology-driven market development. The committee has received 1,055 suggestions from various stakeholders, which have been forwarded to the government for comments.

Mahtab said the panel is also working to simplify the proposed law and make it easier for investors and market participants to understand. The committee held discussions with officials from the Ministries of Finance and Law & Justice and conducted a clause-by-clause review of the Bill.

The Code proposes expanding SEBI’s Board from nine (9) members to as many as 15 and introduces conflict-of-interest provisions requiring disclosures and recusal where necessary. The panel aims to submit its report to Parliament during the first week of the upcoming Monsoon Session.