Securities Markets Code Bill 2025: 4 Key Laws to Be Unified as Parliament’s Winter Session Begins December 1

The government is set to introduce the Securities Markets Code Bill 2025 during the Winter Session of Parliament beginning December 1, according to a Lok Sabha bulletin. The Bill aims to merge India’s fragmented securities laws into a single, rationalised code to strengthen investor protection, reduce regulatory friction and modernise the functioning of financial markets. First proposed in the Union Budget 2021–22 by Finance Minister Nirmala Sitharaman, this unified framework seeks to streamline compliance, build greater transparency and enhance confidence across capital markets, depositories, corporate bond markets and government securities.

Key Takeaways: What the Securities Markets Code Bill 2025 Aims to Change in India’s Market Framework

• The Securities Markets Code Bill 2025 will be introduced in the Winter Session starting December 1, as listed in the Lok Sabha bulletin.

• It consolidates four major laws: the SEBI Act (1992), the Depositories Act (1996), the Securities Contracts (Regulation) Act (1956), and the Government Securities Act (2007).

• The proposal was originally announced in the Union Budget 2021–22 by Finance Minister Nirmala Sitharaman.

• The unified code aims to reduce compliance burdens, eliminate overlapping regulations and improve ease of doing business.

• Experts say merging the Government Securities Act could strengthen sovereign borrowing credibility and attract more foreign capital.

• The 2021–22 Budget also proposed reforms like a permanent institutional framework for the corporate bond market and establishing regulated gold exchanges under SEBI.

• Investor protection measures, including a proposed Investor Charter across financial products, were also part of the Budget framework associated with this reform.

A Unified Code: Consolidating India’s Fragmented Market Laws

The Securities Markets Code Bill 2025 seeks to merge multiple long-standing laws that have governed different segments of India’s financial markets for decades. Currently, the SEBI Act, the Depositories Act, the Securities Contracts (Regulation) Act and the Government Securities Act function separately, creating multiple layers of compliance for companies, intermediaries and investors.

The Bill aims to bring all these frameworks under a single umbrella, creating a uniform regulatory environment. Experts note that India’s rapidly expanding capital markets require simplified structures to reduce ambiguity and unnecessary legal friction. A unified code, they argue, can make compliance more predictable and operations more transparent for market participants.

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Why the Unified Securities Code Became Necessary

India’s capital markets are regulated by several authorities, each guided by its own legislation. While these laws ensured oversight at different levels, they also created overlaps that often resulted in conflicting rules or duplicative compliance requirements.

Experts believe that a unified code could reduce compliance costs for companies and market intermediaries. Streamlining the regulatory architecture is expected to remove friction between rules enforced by SEBI, depositories and the central government. This move is seen as a major step toward building a more efficient, investor-friendly financial ecosystem.

First Announced in Union Budget 2021–22

The foundation of this reform was laid in the Union Budget 2021–22. Finance Minister Nirmala Sitharaman announced the government’s intention to consolidate the SEBI Act, Depositories Act, Securities Contracts (Regulation) Act and the Government Securities Act into a rationalised Securities Markets Code.

The Budget also unveiled ambitious financial sector reforms aimed at expanding India’s market infrastructure, including support for developing a world-class FinTech hub at GIFT-IFSC. The introduction of the unified code in 2025 is a direct continuation of the reform roadmap presented during that Budget.

Strengthening the Corporate Bond Market

Alongside the proposal for a unified code, the 2021–22 Budget also focused on boosting the corporate bond market. The Finance Minister proposed the creation of a permanent institutional framework designed to support liquidity during both stressed and normal times.

This institution would purchase investment-grade debt securities, providing stability and building confidence among market participants during periods of volatility. Such a mechanism is expected to deepen India’s bond markets and encourage more long-term participation.

Regulated Gold Exchanges: SEBI to Act as Regulator

The Budget 2018–19 had highlighted the government’s plan to establish regulated gold exchanges in India. The 2021–22 Budget reiterated this commitment, confirming that SEBI would be notified as the regulator for these exchanges.

To support the ecosystem, the Warehousing Development and Regulatory Authority (WDRA) would be strengthened, enabling the establishment of a robust commodity market infrastructure including vaulting, assaying, logistics and warehousing systems.

Investor Charter: A Unified Rights Framework for Investors

To enhance investor protection across financial products, the Finance Minister proposed an investor charter, a framework that would define the rights of all financial investors. This was intended to improve transparency, strengthen grievance redressal and ensure consistent standards of service across all segments of the financial market.

Impact on Sovereign Borrowing and Bond Markets

By including the Government Securities Act within a single securities code, the proposed legislation is expected to increase transparency and boost trust in India’s sovereign borrowing system. Experts argue that this integration will enhance credibility and attract more foreign participation in the government bond market.

A more transparent and unified framework could make India’s debt markets more competitive globally, reducing fragmentation and improving investor experience.

How the Unified Code Can Transform India’s Market Landscape

If passed, the Securities Markets Code Bill 2025 will mark a significant shift toward a “one nation, one market code” structure. It is designed to make regulatory processes smoother, reduce confusion arising from multiple overlapping laws and create a more cohesive operating environment for investors and institutions.

The move is widely seen as a step toward making India’s financial markets more agile and globally competitive.

Towards a Stronger, More Transparent Securities Market

The Securities Markets Code Bill 2025 represents one of the most comprehensive market reforms undertaken in recent years. By consolidating key laws, revisiting earlier proposals from the Union Budget 2021–22 and strengthening the framework around corporate bonds, gold exchanges and investor rights, the government is pushing for a modern, unified regulatory system. If enacted, this legislation could not only simplify compliance but also enhance investor trust, deepen capital markets and support India’s long-term financial growth trajectory.

The Deeper Dimension of Security: Protecting the Soul Through True Spiritual Knowledge

While the Securities Markets Code Bill 2025 focuses on creating a safer, more transparent environment for financial investors, a deeper question often remains unaddressed: what about the security of our soul? Just as investors seek a reliable framework to safeguard their capital, every human being deserves a path that ensures the eternal safety of their soul after death. The world talks about regulatory protection, but spiritual protection is even more critical, because the journey after life is far more significant than material gains.

According to the eternal spiritual principles revealed by Tatvdarshi Saint Rampal Ji Maharaj, the soul’s true security lies in understanding where we will go after death, who will guide us, and who will testify on our behalf. When the soul reaches Dharmraj after leaving the body, no worldly achievements, wealth or status matter. Only the completion of true devotion determines whether the soul escapes the painful cycle of birth and death.

Tatvadarshi Saint Rampal Ji Maharaj explains that a soul without a True Guru remains unprotected. Such souls wander through the 84 lakh life-forms, sometimes as animals like dogs, pigs or donkeys, because they lack the spiritual authorization needed to cross the cycle of reincarnation. Even those who follow fake or self-proclaimed gurus do not gain spiritual security; they too fall back into the karmic cycle because their guide does not hold divine authority.

History itself gives evidence. Saint Rampal Ji Maharaj cites that even the great sage Sukhdev, despite being highly enlightened, was sent back by Lord Vishnu because he did not have a Guru. This shows that initiation (Naam Diksha) from a Complete Guru is not optional, it is essential for liberation. Only such a Guru can represent the soul before Dharmraj and confirm that the devotee’s worship is complete, allowing them to exit the cycle of rebirth permanently.

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FAQs on the Securities Markets Code Bill 2025

What is the Securities Markets Code Bill 2025?

It is a unified legislation that merges India’s major securities laws to simplify compliance, reduce regulatory overlap and strengthen investor protection.

Which laws will be merged under the Securities Markets Code?

The Bill consolidates the SEBI Act 1992, Depositories Act 1996, Securities Contracts Act 1956 and Government Securities Act 2007.

When was the unified code first proposed?

The unified framework was first proposed in the Union Budget 2021–22 by Finance Minister Nirmala Sitharaman.

How will the Bill benefit investors and companies?

It reduces compliance costs, removes conflicting regulations, increases transparency and improves ease of doing business across financial markets.

How will the unified code impact India’s bond market?

Including the Government Securities Act enhances sovereign borrowing credibility, boosts transparency and may attract more foreign participation in government bonds.