UPSC-Relevant News Items

1. New Bill proposes larger SEBI board and stricter conflict of interest safeguards

Page: 8

Summary:

• • The Finance Minister introduced the Securities Markets Code (SMC), 2025, consolidating three existing laws to strengthen market regulation.
• • It proposes a larger 15-member SEBI board and empowers SEBI to remove members for non-compliance and stricter conflict of interest.
• • The Bill decriminalizes some contraventions, retains criminal penalties for fraud, and mandates robust investor protection mechanisms.
• • The SMC establishes a tiered structure for imposing civil penalties based on the nature and severity of the market violation.
• • The SMC serves as the primary legal framework aimed at improving regulatory oversight and investor confidence.

Additional Facts:

• • The Securities Markets Code (SMC), 2025, introduced by the Finance Minister, consolidates three existing laws, serving as the primary legal framework for strengthening securities market regulation and investor protection.
• • The Bill enhances the institutional mechanism of SEBI by expanding its board (to 15 members) and strengthening regulatory oversight by empowering it to mandate stricter conflict of interest safeguards and remove non-compliant members.

Linkage with UPSC course:

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