The Securities Markets Code: Regulatory governance, finally codified

The Securities Markets Code embeds legitimacy, proportionality, and accountability into market regulation. The first of a three-part series

The Securities Markets Code (SMC), 2025 consolidates the Securities and Exchange Board of India (Sebi) Act, the Securities Contracts (Regulation) Act, and the Depositories Act into a single, contemporary statute. More importantly, it brings regulatory governance to the forefront of market regulation. Drawing on lessons from the evolution of regulations, judicial scrutiny, regulatory experience spanning three decades among Indian regulators, and global best practices, the code addresses concerns around democratic legitimacy, proportionality in enforcement, and institutional accountability in securities regulations.

  The code addresses a wide canvas: Board composition, independence and accountability, conflict management, transparency, regulatory sandboxing, investor charter, governance