The Government of India is going to introduce the Securities Market Code bill 2025, under which three big old laws related to the stock market—SEBI Act 1992, Depository ACT 1996 and Securities Contract (Regulation) ACT 1956—will be changed into a single modern and simple law. This step is being considered very important towards making the stock market rules more transparent, clear and investor-friendly. Finance Minister Nirmala Sitharaman had hinted at this change for the first time in the Budget 2021–22. He said that due to different laws, companies and investors have to face many complexities and confusion. But after the implementation of the new code, all the rules will come in a single framework, which will make them very easy to understand and follow. This will not only save the time of investors, but will also reduce the huge expenditure of companies on compliance. Clarity in rules will increase transparency in the market and processes like trading, investment, fund transfer will become faster and simpler. If this bill is passed, the way of investing in the stock market can completely change in the coming years and common investors will get more security, convenience and confidence.
