The Parliamentary Standing Committee has submitted its report on the Securities Markets Code, 2025 to the parliament, broadly backing the code, and recommending a sharper and more accountable regulatory framework with the Securities and Exchange Board of India (SEBI).
It will repeal the Securities and Exchange Board of India Act, 1992 (SEBI Act), the Securities Contracts (Regulation) Act, 1956 (SCRA) and the Depositories Act, 1996. The objective of the bill is to rationalise, consolidate, modernise and update the securities laws, as well as incorporate various lessons from regulatory experiences and judicial decisions over the years.
While speaking with the Times Now on the benefits of the Bill for the Virtual Digital Assets (VDA), Ashish Singhal, Co-founder, CoinSwitch said, “The recommendation to introduce an interim regulatory mechanism through a recognised Self-Regulatory Organisation (SRO), under regulatory oversight, is a pragmatic approach while a comprehensive framework evolves.”
“As an industry, we have consistently advocated for a balanced, risk-based regulatory framework that protects investors while enabling responsible innovation. An SRO-led model can help strengthen governance, improve accountability, and enhance investor protection during this transition,” he said.
“We look forward to continued engagement with policymakers and all stakeholders to help build a secure, transparent, and well-regulated digital asset ecosystem for India,” he added.
Bhartruhari Mahtab, Chairman of the Parliamentary Standing Committee on Finance said, “Security market report has been placed. What we have done is an amalgamation of three acts through which we have tried to make the law a little simpler and investor-friendly.”
“That is the focus of ours. Because a large number of small traders are now trading in the securities market, our basic approach has been to give them protection,” Mahtab said while speaking to ANI.
The committee has also recommended extending the cooling-off period to two years instead of the one year proposed in the Bill. And we have also decided that the cooling-off period should be of two years instead of one year as was suggested in the bill earlier, he added.
Securities Markets Code to Bring Clarity to India’s Virtual Digital Assets Ecosystem Through SRO Framework
