New Securities Markets Code Aims to Enhance India's Digital Asset Regulation

The Parliamentary Standing Committee has recently presented its report on the Securities Markets Code, 2025, to the Indian Parliament, expressing strong support for the proposed legislation. This new code seeks to establish a more robust and accountable regulatory framework, primarily under the oversight of the Securities and Exchange Board of India (SEBI). The initiative will result in the repeal of several existing laws, including the SEBI Act of 1992, the Securities Contracts (Regulation) Act of 1956, and the Depositories Act of 1996. The overarching goal of this bill is to streamline, modernize, and enhance the current securities laws while integrating valuable lessons learned from past regulatory experiences and judicial rulings. This comprehensive reform is expected to bring clarity and structure to the rapidly evolving landscape of virtual digital assets (VDAs) in India.

In an interview with Times Now, Ashish Singhal, the Co-founder of CoinSwitch, highlighted the significance of the bill for the VDA sector. He emphasized the recommendation to establish an interim regulatory framework through a recognized Self-Regulatory Organization (SRO), which would operate under regulatory supervision. Singhal described this approach as pragmatic, especially as a more detailed regulatory framework is developed. He stated, "As an industry, we have consistently advocated for a balanced, risk-based regulatory framework that protects investors while enabling responsible innovation. An SRO-led model can help strengthen governance, improve accountability, and enhance investor protection during this transition." He expressed optimism about ongoing collaboration with policymakers and stakeholders to create a secure, transparent, and well-regulated digital asset ecosystem in India.