The government has introduced a new bill in Parliament aimed at strengthening and streamlining the regulatory framework governing India’s securities markets, while also laying down revised norms for members of the Securities and Exchange Board of India (SEBI). The proposed legislation seeks to enhance transparency, improve regulatory efficiency, and align India’s capital market oversight with global best practices.

According to officials, the bill focuses on simplifying existing regulatory processes, reducing overlaps, and enabling faster decision-making within the securities ecosystem. It aims to empower SEBI with clearer authority to respond to emerging market risks, technological disruptions, and complex financial products, including those driven by digital trading platforms and algorithmic systems.

A key feature of the bill is the introduction of new eligibility and governance norms for SEBI board members. These provisions are designed to strengthen independence, prevent conflicts of interest, and ensure that board members possess relevant expertise in areas such as finance, law, technology, and risk management. The changes are expected to enhance accountability and reinforce investor confidence in the regulator’s decision-making process.

The bill also seeks to modernise enforcement mechanisms by enabling quicker investigations and more effective penalties for market violations such as insider trading, market manipulation, and fraud. By streamlining procedures, the government aims to reduce litigation delays and improve compliance across intermediaries, exchanges, and listed companies.

Market participants have largely welcomed the move, viewing it as a step toward more robust governance and regulatory clarity. If passed, the bill is expected to play a critical role in strengthening India’s capital markets, protecting investors, and supporting sustainable growth amid rapidly evolving financial and technological landscapes.