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SEBI Surplus Transfer: Clause 124 of Securities Markets Code

2 January 20261 min read
BANKING & FINANCESEBI SurplusTransfer: Clause124 of SecuritiesMarkets Code2 January 2026safalsetu.com

Why in the news

A clause in the new securities bill drew concern because it ties SEBI’s finances to the government.

Key facts

  • Effect: effectively hard-codes a ceiling on the regulator’s spending and compels surplus transfer to the government.
  • Now: SEBI’s General Fund is fed by fees and charges; its own Board approves the budget.

Exam angle

  • Clause number: 124.
  • Financial independence of SEBI rests on the SEBI Act, 1992.

Test yourself

1. Which clause of the Securities Markets Code Bill 2025 deals with SEBI's surplus transfer?

Clause 124 proposes the transfer to the Consolidated Fund of India.

2. What share of SEBI's annual surplus goes to the Reserve Fund under the proposal?

25% is credited to a Reserve Fund, capped at two years' expenditure.

3. Where would SEBI's remaining annual surplus be transferred under the Securities Markets Code Bill?

The remaining surplus moves yearly to the CFI.

This topic is part of Daily Current Affairs 30 & 31 December 2025 (19 topics).

All topics of the dayDay quizDecember 2025

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