Speaking at the ICICI Securities India Investor Conference 2026, Sebi Chief Tuhin Kanta Pandey highlighted the growing role of India's capital markets in household savings and wealth creation. Despite global challenges, India's growth story is propelled by the formalisation and financialisation of savings, with capital markets becoming a core avenue for these activities.
Pandey noted that India's capital markets have expanded significantly, with IPO activity remaining robust in FY26, resulting in 366 public issues raising around Rs 1.9 lakh crore. Total equity issuance surpassed Rs 4.5 lakh crore, while corporate bond issuances exceeded Rs 9 lakh crore. The market cap has risen from about 69% of GDP a decade ago to nearly 128% currently.
The investor base in India has grown substantially, with around 145 million investors in the securities market, increasing at more than 20% annually. Mutual fund assets have surged from about Rs 12 lakh crore to over Rs 80 lakh crore in the past decade. Household financial savings as a percentage of GDP rose to 21.7% in FY25 from around 20% in FY23, indicating a shift in savings behavior.
“Capital markets are increasingly becoming a core avenue for household savings and wealth creation.”
Tuhin Kanta Pandey, Sebi Chief
Pandey emphasized Sebi's focus on 'optimum regulation' to balance investor protection, market integrity, and growth. The regulator has streamlined IPO timelines, rights issues, and eased listing norms for large issuers. Collaborations with the Reserve Bank of India aim to introduce derivatives linked to corporate bond indices and improve liquidity.
Looking ahead, Sebi is reviewing variable net-worth requirements for brokers and considering improvements in IPO price discovery and mutual fund liquidity management. Pandey stressed that future reforms would prioritize keeping the investor at the center of market development.
Background
As India's economy continues to grow, driven by domestic consumption, public investment, and private sector participation, the capital markets' expansion is crucial for sustaining this growth. The ongoing reforms and regulatory measures are expected to enhance market confidence and participation, laying a strong foundation for future development.
As India's economy continues to grow, driven by domestic consumption, public investment, and private sector participation, the capital markets' expansion is crucial for sustaining this growth. The ongoing reforms and regulatory measures are expected to enhance market confidence and participation, laying a strong foundation for future development.
