What are the key changes proposed in the Securities Market Code Bill?

The bill proposes to consolidate securities laws, enhance market disclosure requirements, and introduce an Ombudsman system for investor grievances.

How will the new Ombudsman system affect the Securities Appellate Tribunal (SAT)?

The Ombudsman system may significantly increase the caseload for SAT, as it will be the exclusive forum for appeals against Ombudsman decisions.

What impact will the Securities Market Code Bill have on listed companies?

Listed companies will likely need to disclose regulatory notices immediately upon receipt, potentially affecting stock prices.

Home / Business and Economy / New Securities Bill: Market Disclosures Set for Overhaul

New Securities Bill: Market Disclosures Set for Overhaul

21 Dec, 2025

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Summary

Companies must disclose regulatory notices immediately upon receipt.
Ombudsman system may increase caseload for Securities Appellate Tribunal.
Bill consolidates existing securities laws into a single framework.

New Securities Bill: Market Disclosures Set for Overhaul

The proposed Securities Market Code Bill, introduced in the Lok Sabha, aims to consolidate and amend existing securities laws into a single framework. This legislation is expected to significantly alter market disclosure requirements for listed companies, mandating immediate reporting of regulatory notices. Such immediate disclosures could lead to unusual stock movements, impacting market dynamics.

The bill also establishes an Ombudsman system to handle investor grievances in a time-bound manner, operating alongside existing platforms. However, this new mechanism raises concerns about overburdening the Securities Appellate Tribunal (SAT), which currently faces a significant caseload. Appeals against the Ombudsman's decisions will exclusively go to SAT, potentially exacerbating pendency issues.