New Delhi, July 23 -- The Parliamentary Standing Committee on Finance has recommended a clearer division of regulatory responsibilities between the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), saying the proposed Securities Markets Code, 2025 should clearly define which regulator oversees which activities to avoid overlap and regulatory uncertainty.

In its report tabled in Parliament on Thursday, the committee said India's financial system consists of several entities that undertake activities falling under more than one financial sector regulator.

It noted that regulatory jurisdiction should ordinarily be determined by the nature of the activity being carried out rather than the identity of the ent...