A fresh perspective on India’s securities market laws
In order to keep pace with time and shifting dynamics, comprehensive reviews of laws have been periodically undertaken. It is well understood that laws tend to evolve through continuous amendments, making them increasingly complex, cumbersome, and at times difficult to comprehend. In such circumstances, a regular review — or in some cases, a fresh approach — can prove more effective.
Historical Reviews and Overhauls of Laws
Over time, several significant legal reforms have been initiated. For example, the Foreign Exchange Regulations Act (FERA) was replaced with the Foreign Exchange Management Act (FEMA). The Companies Act, 1956, underwent a major revision in 2013, giving way to the Companies Act, 2013. This year, a comprehensive review of India’s income tax laws is underway. Additionally, the implementation of the Goods and Services Tax (GST) was a major overhaul of indirect tax laws.
Time for a Re-evaluation of Securities Laws
In this same spirit, India’s securities laws also warrant a thorough re-evaluation. The Securities and Exchange Board of India (SEBI) was established in 1988 and granted statutory powers in 1992, akin to moving into a newly built house. Its rules and regulations were designed for the financial markets of that time — fresh, well-structured, and fit for purpose.
However, over the decades, SEBI has added new policies, compliance norms, and frameworks to manage an increasingly complex and expanding market. Since SEBI's inception, India’s financial markets have grown nearly 100-fold, and
