Securities Markets Code, 2025: How it can build a future-ready regulatory framework
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Mains·
Why in news
Investment banker Sunil Sanghai proposed amendments to the Securities Markets Code to enhance capital market growth by streamlining listing processes and regulatory oversight.
Background
The proposal suggests mechanisms for companies to list without issuing new shares and the creation of a trading platform for unlisted companies. It also advocates for the SEBI to be formally recognized as the sole regulator for listed companies to streamline corporate action approvals.
Facts for Prelims
- BodySEBI: Securities and Exchange Board of India is the proposed sole regulator for listed companies in the proposal.
- FactThe proposal includes a mechanism for companies to list without offering new shares.
- FactThe proposal suggests creating a dedicated trading platform for unlisted companies.
For Mains
Q. Discuss how streamlining regulatory frameworks and diversifying listing mechanisms can bolster India's position as a global hub for capital markets.
Dimensions to cover in your answer
- Regulatory clarity: Reducing overlapping jurisdictions to expedite corporate actions and investor confidence
- Market depth: Expanding trading avenues to unlisted entities to enhance liquidity and valuation accuracy
- Technological integration: Addressing electronic voting hurdles to ensure transparent and seamless shareholder participation
Keywords: Regulatory Framework · Capital Market Growth · Corporate Governance · Market Liquidity · Listing Mechanisms
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