Bullish for Market Integrity: Govt Tweaks Securities Code; CDSL to

The government has accepted significant changes to the proposed Securities Markets Code. Key revisions include extending investigation timelines to one year, granting depositories powers to correct records, and requiring SEBI's recommendation for the Centre to supersede market infrastructure institution boards.

These changes aim to strengthen market regulation, enhance investor protection, and improve the efficiency and integrity of the Indian securities market. Empowering depositories and ensuring SEBI's oversight in critical decisions can build greater trust and stability in the financial ecosystem.

Central Depository Services (India) Ltd (CDSL) and National Securities Depository Ltd (NSDL, though not listed) could see an enhanced role and potentially increased business as they gain more powers. The overall financial services sector benefits from a more robust regulatory framework, which can attract more investors. Market infrastructure institutions might also see more stable governance.

Traders should monitor the finalization and implementation of these code changes. Look for any specific guidelines or regulations issued by SEBI regarding the new powers granted to depositories. The long-term impact will be on improved market efficiency and investor confidence, which could attract more capital.

• •Government has accepted significant changes to the proposed Securities Markets Code.
• •Investigation timelines will be extended to one year.
• •Depositories will gain powers to correct records.
• •Centre's authority to supersede market infrastructure institution boards will now require Sebi's recommendation.
• •Risk flag: Implementation challenges of new regulations