SEBI 2.0: Institutional Transformation under the Securities Markets Code, 2025
Keywords:
SEBI 2.0, securities markets code 2025, capital market regulation, investor protection, regulatory governance.Abstract
The Securities Markets Code, 2025 marks a decisive shift in India’s capital market regulation by introducing a unified legislative framework and redefining the institutional role of the Securities and Exchange Board of India (SEBI). SEBI 2.0, this transformation reflects a move from fragmented, statute-driven regulation to a consolidated and principle-based regulatory architecture. This paper critically examines the institutional restructuring of SEBI under the securities markets code, 2025, with particular emphasis on expanded regulatory powers, changes in board composition, enhanced disclosure obligations, and strengthened
enforcement mechanisms. It analyses how the new code seeks to balance regulatory efficiency with accountability, independence, and investor protection in an increasingly complex and technology-driven securities market. The study also evaluates potential concerns relating to concentration of regulatory authority, checks and balances, and the implications for market participants and democratic oversight. SEBI’s transformation within the broader objectives of capital market development, ease of doing business, and investor confidence, responsive, and future-ready regulator. The research adopts a doctrinal, drawing
upon statutory provisions, regulatory theory, and comparative insights to assess the effectiveness and challenges of this institutional shift.
References
https://www.indiabudget.gov.in/doc/memo.pdf
https://prsindia.org/files/bills_acts/bills_parliament/2025/Health_Security_se_National_Security_
Cess_Bill,_2025.pdf
https://www.thehindu.com/news/international/trump-signs-into-law-defence-policy-bill-backing-
deeper-engagement-with-india-including-via-quad/article70414547.ece
https://tlclegal.in/ibc-bill-2025-end-of-confusion-for-priority-of-government-dues/
Securities and Exchange Board of India. (2023). Annual report 2022–23. Mumbai: SEBI.
Securities and Exchange Board of India. (1992). Securities and Exchange Board of India Act,
New Delhi: Government of India
https://m.economictimes.com/news/economy/policy/securities-market-code-bill-for-boosting-
sebi-power-accountability/articleshow/126064103.cms
https://indianexpress.com/article/business/markets-code-tabled-in-lok-sabha-key-provisions-of-
bill-that-allows-removal-of-sebi-board-member-over-conflict-of-interest-10427433/
https://www.timesnownews.com/business-economy/markets/securities-markets-code-bill-2025-
to-be-tabled-in-winter-session-of-parliament-article-153192685
https://www.taxscan.in/top-stories/winter-parliament-session-2025-key-bills-including-securities-
code-corporate-law-overhaul-set-for-passage-1438973
https://www.business-standard.com/amp/markets/news/securities-laws-set-for-reset-as-fm-
introduces-bill-for-unified-code-125121801089_1.html
https://sanews.in/securities-markets-code-bill-2025/
https://indianexpress.com/article/business/markets-code-tabled-in-lok-sabha-key-provisions-of-
bill-that-allows-removal-of-sebi-board-member-over-conflict-of-interest-10427433/
https://www.angelone.in/news/economy/finance-minister-introduces-securities-markets-code-bill-
in-lok-sabha
The Securities Contracts (Regulation) Act (SCRA) in 1956.
Harshad Mehata Scam 1990
The Securities and Exchange Board of India Act, 1992
The Depositories Act, 1996
Millennium Post. (2025). FinMin unveils draft Securities Markets Code Bill to boost SEBI
transparency, cut compliance.
The Government Securities Act, 2007
Millennium Post. (2025). FinMin unveils draft Securities Markets Code Bill to boost SEBI
transparency, cut compliance.
Times of India. (2025). Securities market code bill: Sebi reform bill seeks bigger board, stronger
oversight
The Week. (2025). Securities Markets Code Bill: Why Centre wants one law for India’s financial
markets.
Angel One. (2025). Finance Minister Introduces Securities Markets Code Bill in Lok Sabha.
Times of India. (2025). Securities market code bill: Sebi reform bill seeks bigger board, stronger
oversight.
Singh, B. (2025). Regulatory Framework and Investor Protection Mechanisms in Indian Capital
Markets: Recent Developments and Challenges.
The Week. (2025). Securities Markets Code Bill: Why Centre wants one law for India’s financial
markets.
Economic Times. (2025). Securities Markets Code Bill 2025: All you need to know.
Moneycontrol. (2025). Unified Securities Markets Code likely to decriminalise provisions.
The Week. (2025). Securities Markets Code Bill: Why Centre wants one law for India’s financial
markets.
Times of India. (2025). Securities market code bill: Sebi reform bill seeks bigger board, stronger
oversight.
Securities and Exchange Board of India Act, 1992.
securities contracts (regulation) act, 1956
depositories act, 1996
Securities Markets Code Bill, 2025 (India).
Securities Markets Code Bill, 2025
Shah, A., Thomas, S., & Gorham, M. (2014). India’s financial markets: An insider’s guide to how
the markets work. Oxford: Oxford University Press.
Varottil, U. (2016). The regulatory strategy for shareholder protection in India. National Law
School of India Review, 28(2), 1–35.
Bhattacharya, U., & Daouk, H. (2009). The world price of insider trading. Journal of Finance,
(1), 75–108. https://doi.org/10.1111/1540-6261.00416
Goswami, O. (2002). Corporate governance in India. New Delhi: Centre for Corporate
Governance
Sahara India Real Estate Corporation Ltd. v. SEBI, (2013) 1 SCC 1.
SEBI v. Rakhi Trading Pvt. Ltd., (2018) 13 SCC 753.
Clariant International Ltd. v. SEBI, (2004) 8 SCC 524.
SEBI v. Shri Ram Mutual Fund, (2006) 5 SCC 361.
N. Narayanan v. SEBI, (2013) 12 SCC 152.
Karvy Stock Broking Ltd. v. SEBI, 2020 SCC OnLine SAT 98.
PGF Limited v. Union of India, (2015) 13 SCC 50.
Ram, S. R. R. (2025). The retail gamble: Are SEBI’s safeguards enough in India’s options
market? International Journal for Legal Research and Analysis
Sukumaran, A., & Sarma, P. V. N. (2023). The significance of SEBI in investor protection.
International Journal of Law Management & Humanities, 6(6), 44–51.
Article 14 of the Constitution of India
Article 19 of the Constitution of India
