SEBI Reforms: Surplus to Govt, Probe Timelines Fixed, Board Expands

• SMC Bill 2025 proposes major reforms, consolidating three existing laws into one.
• SEBI to transfer 75% of its annual surplus to the Consolidated Fund of India after retaining 25% for a reserve fund.
• Mandatory 180-day (6-month) timeline for SEBI investigations, with reasons required for delays.
• Introduction of an ombudsman system for investor grievance redressal and an Investor Charter.
• SEBI board members to increase from 9 to 15; minor offenses to be decriminalized.

Why It Matters: SMC Bill 2025 aims to overhaul SEBI's financial autonomy, investigation process, and investor protection.