Securities Code Overhaul: Probe Times Extended

The government has accepted substantial amendments to the proposed Securities Markets Code (SMC), influenced by stakeholder consultations. Key among these is the extension of investigation timelines from 180 days to a full year, a change crucial for thoroughly examining complex cases like insider trading and market manipulation.

Additionally, depositories will be empowered to correct records, especially in instances of fraud or technical glitches, bolstering investor safeguards. The Centre's power to supersede the boards of market infrastructure institutions will now be contingent upon a recommendation from the Securities and Exchange Board of India (Sebi).

These revisions, discussed extensively with the Parliamentary Standing Committee on Finance, aim to strengthen market regulation. The committee reviewed over 1,000 comments, leading to the acceptance of 62 suggestions. The updated code also broadens appellate remedies and sets outer limits for appealing decisions.