Source: business standard
The proposal in the budget presented yesterday to establish a unified securities market code is a great step that will help eliminate overlapping and outdated laws. The government intends to consolidate four acts namely the SEBI Act, Depositories Act, Securities Contracts (Regulation) Act and Government Securities Act that aims at bringing better results in multiple benefits for the markets.The code is in line with previous discussions on the NFRA and is expected to remove any possible conflicts in the regulatory framework
It would not only eliminate duplication, simplify the law to avoid multiple interpretations of different acts and improve ease of doing business and enhance confidence of investors but also modernise the law, some of which is as old as 1956.The consolidation of securities laws marks an important move towards making Indian corporate legal framework simpler, business-friendly and ultimately reducing compliance costs.