Old rules will change
There is big news for those investing in the share market. The government is going to abolish three big old laws and bring in a brand new and simple law. Its name is Securities Market Code Bill 2025. This bill will be presented in the winter session of Parliament starting from December 1.
This new law includes SEBI Act 1992, Depository Act 1996 and Securities Contract (Regulation) Act 1956. These three old laws will be merged into just one law. Finance Minister Nirmala Sitharaman was the first to announce this in the budget for the year 2021-22. He had said that due to different laws, companies and investors face a lot of trouble, now all the things will be done at one place. This will also make it easier for investors to understand and follow the laws.
Common investors will benefit from this
This is going to be very beneficial for common investors. The crores of rupees spent today on making companies follow the law will be significantly reduced. The confusion that exists between different rules of SEBI, depository and government will be completely removed. All the rules will become very clear and easy. The biggest thing is that the law related to government bonds and loans is also being included in this, hence foreign investors will trust India more.
Be it share market or bond market, everything will come under one roof. Experts believe that as soon as this new law comes, India’s stock market will become completely modern. From small investors to big funds, everyone’s life will become easier. Investing, withdrawing money, trading, everything will become fast and simple. If this bill is passed, the entire way of investing in the stock market will change in the coming few years.
FDI limit will increase
Along with this, the government will present a bill in the winter session of Parliament to increase the limit of Foreign Direct Investment (FDI) in the insurance sector to 100 percent. The winter session of Parliament will start from December 1 and continue till December 19. In this year’s budget speech, Finance Minister Nirmala Sitharaman had proposed to increase the current 74 percent limit of foreign investment in the insurance sector to 100 percent. This proposal is part of the new generation financial sector reforms.