Mumbai: SEBI Chairman Tuhin Kanta Pandey on Monday said that India’s capital markets could soon become the preferred destination for household savings, provided the country sustains its economic growth trajectory. Speaking at the 'CII National Financing Summit' here, he projected that India’s unique investor base could double over the next three to five years, given the still-low penetration of equity ownership.
A significant milestone has already been reached, according to Pandey. Domestic investors, including both households and institutions, now own a larger proportion of listed stocks than foreign investors, a sign of rising market confidence, he added. Deeper participation, he said, will be essential to converting India's growing savings pool into long-term capital for businesses, as there are approximately 135 million distinct market participants. According to Anuradha Thakur, Secretary, Department of Economic Affairs, over the past few years, the government, along with financial sector regulators, has introduced many regulatory reforms to ease compliance.
"The philosophy behind these fundamental reforms is the desire to ensure that regulatory effectiveness and responsiveness improve, that regulations which are needed remain, and that they become more cost-effective, simple, and easy to comply with. While we have come a long way, the financial sector continues to evolve, and new trends are emerging that require rethinking existing paradigms. This warrants new, innovative approaches going forward; it calls for more collective thinking and stronger partnerships," Thakur said.
"Our financial sector has supported growth so far, but achieving the Viksit Bharat at 2047 vision will require a stronger financial architecture and far greater capital mobilisation. Over the next two days, we’ll discuss the key regulatory and market reforms needed to finance India’s future, efficiently and sustainably," said Chandrajit Banerjee, Director General, CII. Earlier this month, SEBI Chairperson stated that India’s sustained economic strength will be significantly driven by its capital markets, which are essential for the country’s progress towards the 'Viksit Bharat' goal and crucial for capital formation.
He pointed out that companies have raised approximately Rs 2 lakh crore from the primary market this year, which shows the robust investors' confidence. "There is a deep well of domestic capital waiting to be deployed," Pandey said, adding that SEBI is committed to simplifying and speeding up 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 to power India's growth and transformation," the SEBI Chairperson said.
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