New Delhi: The Centre is set to advance its next batch of reforms, with securities markets and housing finance laws likely to be overhauled in the upcoming monsoon session of Parliament in July-August.
According to multiple officials aware of the developments, the central government plans to push the new Securities Market Code and amendments to the National Housing Bank (NHB) Act during the upcoming session.
The Securities Market Code, currently under review by Parliament’s Standing Committee on Finance, seeks to replace three existing laws governing capital markets with a single framework that would simplify regulation, reduce compliance burdens, and strengthen investor protection.
The committee, chaired by BJP MP Bhartruhari Mahtab, is expected to finalize its report after discussions with the finance ministry on 12 June, according to information available from the committee. It has already held discussions with industry bodies and experts.
Separately, the government is considering amendments to the NHB Act that would give the Reserve Bank of India (RBI) greater authority over housing finance companies (HFCs), which manage loans of more than ₹9.5 trillion, the people cited above said on condition of anonymity.
The changes are expected to further consolidate regulatory powers with the RBI while clarifying NHB's developmental role.
Officials said the amendments may also create a deputy managing director position at NHB and align its financial year with the April-March cycle followed by most financial institutions, from its current July-June calendar.
The reforms form part of the government's broader agenda to modernize financial regulation, improve ease of doing business, and attract investments amid global economic uncertainty.
Securities Market Code
The new securities code will replace three old laws—Securities Contracts (Regulation) Act, Securities and Exchange Board of India Act, and the Depositories Act—that have been around for decades.
Chintan Hefa, executive director for IPO advisory and capital markets at Grant Thornton Bharat, said that the new code aims to support capital mobilization, investor protection and market development, and introduces investor-focused provisions such as an investor charter and an ombudsperson.
“Overall, for companies, the code will help with clearer regulatory structure and reduced overlap, and for investors, improved grievance mechanisms and accountability,” Hefa said. “However, effectiveness will depend on the quality of subordinate regulations and consistency in implementation across Sebi (Securities and Exchange Board of India) and intermediaries.”
Dharmesh Jadav, partner, internal audit and risk advisory at Nangia Global, said the code's key reforms—including expanded definitions, stronger investor protection, a bigger role for market infrastructure institutions (MIIs) and decriminalization of minor offences—would improve governance. The changes would simplify compliance for companies while strengthening investor grievance redressal, transparency and accountability.
The Code prescribes that Sebi cannot order investigations after eight years of a violation unless it has been referred to by another agency or the board believes it has had or could have systemic impact on the market.
“The code’s architecture is sound. Its execution will be everything. The Standing Committee on Finance has an opportunity to address the gaps in the proposed code before it is enacted,” added Jadav.
Queries emailed to the ministry of finance, the Parliamentary Standing Committee on Finance and the Prime Minister’s Office on Friday seeking comments on the matter remained unanswered till press time.
NHB Act amendment
A second person said the government may amend the NHB Act to provide the RBI with greater powers in regulatory decision-making, governance oversight, supervisory actions and enforcement related to HFCs.
At present, HFCs operate under a framework involving both the RBI and the National Housing Bank even though the RBI became the principal regulator of HFCs through amendments enacted under the Finance Act, 2019.
Currently, NHB — which was established in 1988 — continues to play a developmental role in promoting housing finance and supporting government housing programmes.
“The proposed legislative changes are intended to formally reflect the evolved regulatory landscape and clarify the respective roles of the RBI and NHB,” a third official familiar with the matter said. “The amendments are also expected to facilitate faster regulatory interventions whenever required and improve supervisory effectiveness.”
The amendments may pave the way for the creation of a deputy managing director (DMD) position in NHB to strengthen the institution’s functioning, a provision that is currently not available under the existing law.
“The financial year for NHB currently ends on 30 June, which may also be changed to 31 March like other financial institutions,” said the third person cited above.
Another person said the NHB follows a July-June financial year because it is mandated under the NHB Act of 1987.
“Changing this would require an amendment to the NHB Act. A National Housing Bank (Amendment) Bill, 2012 had proposed such a change, but NHB continues to follow the 30 June year-end, indicating that the relevant provision remains unchanged,” this person added.
Emails sent on Sunday to the NHB, Department of Financial Services, the finance ministry, the Prime Minister’s Office, the ministry of housing and urban affairs, and the RBI remained unanswered till the time of going to press.
In addition, the government will take up proposals to be finalized by two informal ministerial groups led by home minister Amit Shah and defence minister Rajnath Singh as part of its next set of reform measures, one of the officials cited above said.
Fast-growing sector
According to a March 2026 CareEdge Ratings report, the aggregate loan portfolio of housing finance companies grew at a compound annual growth rate (CAGR) of around 5% and stood at about ₹9.6 trillion as of 31 March 2025, compared with around ₹7.9 trillion as of 31 March 2021.
Over the same period, the share of affordable housing finance companies (AHFCs) in the overall HFC loan portfolio increased from around 10% to 18%.
“The growth rate of AUM is anticipated to stabilise at around 20% in FY27, driven by increasing demand for homes, rapid urbanisation and favourable demographics, supported by government initiatives such as PMAY-linked subsidies. Meanwhile, yields are expected to moderate in FY27 as the transmission of policy rate cuts feeds through lending rates, exerting pressure on net interest margins (NIM),” CareEdge Ratings said in its report.
The Economic Survey FY26 also highlighted the rapid expansion of housing finance in India.
“Housing finance also expanded steadily, with outstanding individual housing loans more than tripling from about ₹10 lakh crore (trillion) at the end of March 2015 to over ₹37 lakh crore (trillion) at the end of March 2025, raising housing loans from 8% to over 11% of GDP, indicating a deeper financialisation of housing demand,” the survey noted.
