Indian Economy News

India's investor base could double in three to five years, says SEBI chairman Mr. Tuhin Kanta Pandey

  • IBEF
  • November 18, 2025

India’s investor base is expected to double over the next three to five years as equity participation remains low despite rising awareness, according to Securities and Exchange Board of India (SEBI) Chairman, Mr. Tuhin Kanta Pandey. Speaking at the Confederation of Indian Industry (CII) National Financing Summit, he noted that sustained economic expansion will play a central role in channelling a greater share of domestic savings into capital markets. He highlighted that Indian households and domestic institutions now hold a larger share of listed equities than Foreign Portfolio Investors (FPIs), supported by a growing pool of nearly 135 million unique market participants. A recent SEBI survey showed that 63% of respondents are aware of the securities market, although only 9.5% currently invest, while 22% are considering entering the markets within the next 12 months. He said this places a significant responsibility on regulators, issuers, and intermediaries to ensure investor protection and high-quality offerings.

He added that India’s capital markets remain resilient due to strong domestic fundamentals, favourable demographics, a deep talent pool, and sustained public and private investment. SEBI is working closely with the Reserve Bank of India to monitor systemic risks, particularly those related to liquidity stress and redemption pressures in mutual funds. On the growing use of Artificial Intelligence (AI), algorithmic systems, and tokenisation, he said the regulatory approach is built on innovation with responsibility and accountability, ensuring that technological progress is supported while risks are mitigated. He also emphasised that rising digital participation increases exposure to cyber fraud, making investor safety critical to elevating India’s capital markets to a stronger position over the next five years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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