One Code for All Securities: Streamlining India’s Market Framework Comes with New Challenges for SEBI

India’s move to introduce a single securities market code marks a major reform aimed at unifying the country’s multiple financial market laws—covering instruments such as equities, bonds, and mutual funds—into one cohesive legislative framework. The consolidation seeks to eliminate regulatory overlaps, streamline compliance, and foster better investor protection.

While the initiative promises long-term clarity, experts note that the Securities and Exchange Board of India (SEBI) will require additional manpower, technological resources, and regulatory coordination to implement and supervise the new regime effectively. Integration with related statutes and regulatory agencies—such as RBI and IRDAI—will also be crucial to ensure smooth transition.

Key Highlights:

Proposal targets consolidation of markets under one regulatory framework.

Aims to simplify compliance and reduce regulatory fragmentation.

Experts call for strengthening SEBI’s infrastructure and enforcement power.

Coordination with other financial regulators remains a key challenge.

Reform seen as critical to deepening India’s capital markets.

Sources: Ministry of Finance; SEBI statements; Economic Times; Business Standard reports.