FM for sending Market Code Bill to panel as Congress flags excessive powers to single body

Opposing the Bill, Congress’s Manish Tewari said, “The Bill results in an unconstitutional concentration of legislative, executive, investigative, adjudicatory, and quasi-judicial powers in a single authority—the Board… This fusion of powers violates the principle of separation of powers and creates a real apprehension of institutional bias, offending Articles 14 and 21.”

He asserted the Bill “entails excessive delegation of essential legislative functions, leaving core policy matters —such as regulatory scope, registration standards, penalties, exemptions, market conduct norms, and even expansion of ‘securities’—to executive-made rules and regulations”. He described it as reducing Parliament “to a mere enabling authority, contr­ary to settled constitutional doctrine”.

“Several provisions permitting search, seizure, attachment of property, freezing of bank accounts, and prolonged interim orders, including ex-parte actions, lack adequate statutory safeguards, narrow thresholds, and strict timelines,” he added. “These coercive powers, exercised predominantly through delegated legislation and executive discretion, fall foul of due process requirements under Article 21 and the test of proportionality.”

“… The swee­ping ‘notwithstanding clauses’, immunity for actions taken in good faith, and wide powers of the central government to issue directions, supersede the Board, grant immunity… together undermine rule of law and equality before law under Article 14.” Sitharaman said since the government has proposed referring it to panel, such details can be discussed there. Krishna Prasad Tenneti, who was in the Chair, said the Speaker will take a call.