New Securities Law: SEBI Powers Soar, ED Steps In, Market Rules to Change

• India's proposed new securities law is the biggest change since SEBI's establishment, aiming to tighten regulations and expand market surveillance.
• SEBI's powers will significantly increase, allowing it to demand records from any individual or company, not just brokers or listed entities.
• The government may gain authority to halt trading in specific securities or commodities, introducing higher policy risk for investors.
• Serious stock market offenses will fall under PMLA, enabling the Enforcement Directorate (ED) to investigate major scams alongside SEBI.
• While honest investors have nothing to fear, the law targets market manipulators, but could lead to uneven rules for PSUs and increased short-term volatility.

Why It Matters: New law boosts SEBI's power, brings ED into market, and reshapes trading rules for greater oversight.