Securities Markets Code 2025 designates SEBI members as public servants

This Bill aims to consolidate and amend existing laws related to securities markets in India. It establishes a unified legal framework for the regulation, administration, and enforcement of securities trading and related financial activities.

The law affects the Securities and Exchange Board of India (SEBI), market infrastructure institutions (such as stock exchanges and depositories), intermediaries (like stock brokers and investment advisors), issuers of securities, investors, and the Central Government.

• Establishes the composition, management, and powers of the Securities and Exchange Board of India (SEBI).
• Grants SEBI powers for inspection, investigation, search and seizure, and adjudication of contraventions.
• Mandates the registration of intermediaries, investment schemes, and market infrastructure institutions.
• Regulates contracts, including provisions for derivatives, spot delivery, and specific delivery contracts.
• Requires securities to be held in dematerialised and fungible form through depositories.
• Sets rules for the listing, delisting, and disclosure requirements for public issues.
• Establishes a Securities Appellate Tribunal for appeals and a mechanism for investor grievance redressal via an Ombudsperson.
• Prohibits fraudulent or unfair practices and market abuse.
• Specifies penalties and punishments for non-compliance, including fines and imprisonment.
• Provides for the establishment of Special Courts to handle offences under the Code.
• Creates an Investor Protection and Education Fund.
• Allows for a regulatory sandbox for testing new financial products.

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