India’s capital markets will play a pivotal role in driving the country’s sustained economic strength and achieving the national goal of Viksit Bharat, according to SEBI Chairperson Tuhin Kanta Pandey. Speaking at an event on Friday, Pandey emphasized that capital formation through robust market mechanisms is essential to powering India’s growth and transformation.
Pandey revealed that companies have raised approximately ₹2 lakh crore from the primary market this year, reflecting strong investor confidence and signaling the depth of domestic capital waiting to be deployed. He affirmed SEBI’s commitment to simplifying and accelerating the capital-raising process, enabling businesses to access funds more efficiently.
“We are facilitators of capital formation, and our goal is to help businesses raise capital seamlessly,” Pandey said, describing SEBI’s regulatory stance as “optimum regulation” that balances oversight with innovation. He noted that the regulator has already implemented several changes and will continue a consultative approach to policy evolution.
Highlighting structural opportunities, Pandey pointed out that mutual fund assets under management currently stand below 25 percent of GDP, with urban participation at around 15 percent and rural engagement at just 6 percent. He identified significant potential for growth in mutual fund penetration, citing data that 22 percent of non-investors who are aware of mutual funds intend to invest within the next year.
Pandey also announced that SEBI will undertake a comprehensive review of short-selling and securities lending and borrowing norms to bring them in line with global standards. He acknowledged that India’s securities lending market remains underdeveloped compared to international benchmarks and reiterated SEBI’s commitment to reforms that enhance transparency, liquidity, and investor-friendliness.
