Capital markets becoming key avenue for household savings: SEBI chief
Capital markets are increasingly emerging as a core avenue for household savings and wealth creation in India, reflecting a structural shift in how Indians are investing and participating in the country’s growth story, SEBI Chairperson Tuhin Kanta Pandey said on Monday.
“Capital markets are increasingly becoming a core avenue for household savings and wealth creation,” Pandey said at the ICICI Securities India Investor Conference 2026. On the Portfolio Management Services (PMS) regulations, the SEBI chief indicated that extensive deliberations are underway and a consultation paper will be released soon. However, he declined to specify a timeline.
Pandey said India’s economic rise is not only about higher growth numbers but also about the formalisation of the economy, financialisation of savings and growing trust in institutions.
Highlighting the growing depth of Indian markets, Pandey said the country now has around 145 million investors in the securities market, with the investor base expanding at more than 20 per cent annually.
He noted that mutual fund assets have surged from about Rs 12 lakh crore to over Rs 80 lakh crore over the years, while household participation in capital markets has continued to rise steadily.
Pandey said household financial savings as a share of GDP increased to 21.7 per cent in FY25 from around 20 per cent in FY23, aided by broader participation across financial instruments.
“Together, these developments point to a clear shift,” Pandey said, adding that households are increasingly allocating savings towards market-linked investment avenues.
The SEBI chief said India’s capital markets are not merely reflecting the country’s growth but are actively enabling it by connecting household savings with enterprises, attracting global capital and converting economic momentum into investable opportunities.
He said equity issuances touched Rs 4.5 lakh crore in FY26, while 366 IPOs raised around Rs 1.9 lakh crore during the year. Corporate bond issuances exceeded Rs 9 lakh crore, underscoring the growing role of markets in capital formation.
Market capitalisation has risen from about 69 per cent of GDP a decade ago to nearly 128 per cent currently, despite recent market corrections, he said. Pandey said the broadening investor base places greater responsibility on regulators and market intermediaries to ensure transparency, investor protection and market integrity.
At the regulatory level, SEBI’s approach remains one of optimum regulation that balances investor protection with ease of access and market development, he said.
The regulator has undertaken a series of reforms aimed at improving capital-raising efficiency, facilitating foreign portfolio investment, deepening corporate bond markets and easing compliance requirements for intermediaries, he added.
Emphasising the centrality of investors to the market ecosystem, Pandey said every regulatory reform and market initiative must ultimately strengthen investor confidence.
“If the investor feels informed, protected and fairly treated, confidence will follow, participation will deepen, and markets will continue to grow on a strong and sustainable foundation,” he said.
