SEBI Chief Says Capital Markets Are Emerging As A Key Channel For Household Savings

Capital markets are increasingly emerging as a key avenue for household savings and wealth creation in India, reflecting a structural shift in investment patterns, Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey said on Monday.

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Household Savings Trend Strengthens

Speaking at the ICICI Securities India Investor Conference 2026, Pandey said household financial savings as a share of GDP rose to 21.7% in FY25 from around 20% in FY23, supported by wider participation across financial instruments.

He said this shift highlights growing financialisation of savings and increasing trust in formal institutions as part of India’s broader economic transformation.

Expanding Investor Participation

Pandey noted that India now has around 145 million investors in the securities market, with the investor base growing at more than 20% annually.

He said mutual fund assets have increased significantly over time, rising from about ₹12 trillion to over ₹80 trillion, reflecting sustained inflows and rising retail participation in market-linked products.

He added that household participation in capital markets continues to expand steadily, supporting deeper financial integration.

Market Depth And Capital Formation

Highlighting market development, Pandey said equity issuances stood at ₹4.5 trillion in FY26, while 366 initial public offerings (IPOs) raised around ₹1.9 trillion during the year.

He added that corporate bond issuances crossed ₹9 trillion, underscoring the increasing role of capital markets in funding economic activity.

Market capitalisation has increased from around 69% of GDP a decade ago to nearly 128% at present, despite recent market corrections.

Structural Shift In Savings Behaviour

Pandey said India’s economic rise is not limited to higher growth numbers but also reflects formalisation of the economy and growing financialisation of household savings.

He stated that capital markets are connecting household savings with enterprises, attracting global capital, and converting economic momentum into investable opportunities.

Regulatory Outlook And PMS Review

On Portfolio Management Services (PMS) regulations, the SEBI chief said discussions are ongoing and a consultation paper will be issued soon. However, he did not specify a timeline for its release.

He also reiterated that SEBI’s regulatory approach focuses on “optimum regulation,” balancing investor protection with ease of access and market development.

Reform Measures And Investor Focus

Pandey said SEBI has undertaken reforms aimed at improving capital-raising efficiency, facilitating foreign portfolio investment, strengthening corporate bond markets, and easing compliance requirements for intermediaries.

He emphasised that investor confidence remains central to all regulatory actions, stating that informed and fairly treated investors are key to sustaining market growth.

Pandey said India’s capital markets are not only reflecting economic growth but actively enabling it by channeling savings into productive investments. He added that continued investor trust and participation will remain critical for long-term market development.