SEBI chief flags big gap between market awareness and participation at IITF

SEBI Chairman Tuhin Kanta Pandey, speaking at the India International Trade Fair, called for urgent efforts to bridge the striking gap between India’s growing financial awareness and its still-limited

participation in the securities market.

Citing fresh data, Pandey said that 63% of Indians are now aware of the securities market, but only 9% actually invest.

“This gap has to be bridged,” he stressed, noting that financial inclusion is no longer just about access — it’s about enabling people to become active participants in the country’s wealth-creation story.

Pandey said the good news is that Indian investors who do enter the markets are displaying strong confidence in the economy. One indicator, he pointed out, is the rapid onboarding of new retail investors, with India adding nearly 1 lakh demat accounts every day.

Supporting this trend, the latest market data shows that retail investors’ share of the market capitalisation of NSE-listed companies has risen to 18.75% — the highest in 22 years. The overall number of trading accounts has also surged, with the NSE crossing 24 crore investor accounts as more people from Tier-2 and Tier-3 towns join the market.

Mutual funds remain another powerful entry route for small investors. Pandey highlighted that assets under management have touched ₹80 trillion, marking a seven-fold increase over the last decade, fuelled by consistent SIP flows and growing trust in professionally managed investments.

However, despite these gains, broad household participation remains low. Recent surveys show that only around 9.5% of Indian households invest in market-linked products — a number Pandey said needs to rise significantly for India to achieve deeper, more stable, and more inclusive capital markets.

“India’s markets are robust, and investor confidence is strong,” the SEBI Chairman said. “But the real potential will be unlocked when more aware citizens become active investors.”

He emphasised that the next phase of market development will depend on strengthening investor education, simplifying market processes, and expanding outreach to first-time investors across the country.