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What is the story about?
The securities market in India is witnessing rapid expansion in both scale and participation, but broader inclusion remains the next key challenge, according to SEBI Chairman Tuhin Kanta Pandey.
Addressing an Investor Awareness Program in Bhubaneswar on May 18, Pandey said Odisha’s strong economic performance is reflected in rising market participation from the state, though significant potential remains untapped.
The number of securities market investors from the state has grown from about 2.5 lakh in FY15 to around 28.5 lakh in FY26. Mutual fund participation has also expanded, with nearly 15 lakh unique investors holding around 59 lakh folios and managing assets worth about ₹71,000 crore.
He said this trend reflects “rising awareness, aspirations and confidence” among households, even as participation is still at an early stage.
Markets as a bridge between savings and growth
Explaining the role of financial markets, Pandey described them as a “bridge between savings and investments,” linking household savings with businesses that require capital for expansion.
He highlighted that funding through equity, debt, REITs, InvITs and municipal bonds is becoming increasingly important in supporting infrastructure and economic development.
He also pointed to the growing role of municipal bonds globally and in India. As of FY26, 22 urban local bodies have raised over ₹4,500 crore through 31 issuances, underscoring their potential as a financing tool for urban infrastructure.
Strong growth in India’s capital markets
Pandey cited strong long-term expansion in India’s securities ecosystem.
Market capitalisation has risen from about ₹95 lakh crore in FY16 to around ₹463 lakh crore by April 2026. Corporate bond markets have also grown significantly, while retail investor participation has surged to about 145 million unique investors, compared with 38 million in FY19.
Primary market activity has remained robust, with 366 IPOs in FY26 raising around ₹1.9 lakh crore. Overall, equity and debt markets mobilised about ₹13.6 trillion during the year.
Mutual funds continue to be a key entry point for retail investors, with assets under management rising from ₹12 trillion in FY16 to nearly ₹82 trillion by April 2026. Monthly SIP flows have increased from around ₹3,000 crore a decade ago to over ₹31,000 crore.
Pandey also noted that systematic investment plans allow investors to start with as little as ₹250 per month, emphasising consistency and long-term investing over ticket size.
Inclusion gap remains key concern
Despite strong growth, SEBI’s Investor Survey 2025 shows a significant gap between awareness and participation. While 63% of households are aware of securities market products, only 9.5% actually invest. Urban participation stands at about 15%, compared with just 6% in rural areas.
Pandey said the focus going forward must be on “inclusive growth,” ensuring broader participation across regions and income groups.
Digital access and investor protection
He also highlighted improvements in ease of investing, including Aadhaar-based e-KYC for instant onboarding and the availability of Basic Services Demat Accounts, which offer low-cost maintenance for holdings up to ₹10 lakh.
Addressing an Investor Awareness Program in Bhubaneswar on May 18, Pandey said Odisha’s strong economic performance is reflected in rising market participation from the state, though significant potential remains untapped.
The number of securities market investors from the state has grown from about 2.5 lakh in FY15 to around 28.5 lakh in FY26. Mutual fund participation has also expanded, with nearly 15 lakh unique investors holding around 59 lakh folios and managing assets worth about ₹71,000 crore.
He said this trend reflects “rising awareness, aspirations and confidence” among households, even as participation is still at an early stage.
Markets as a bridge between savings and growth
Explaining the role of financial markets, Pandey described them as a “bridge between savings and investments,” linking household savings with businesses that require capital for expansion.
He highlighted that funding through equity, debt, REITs, InvITs and municipal bonds is becoming increasingly important in supporting infrastructure and economic development.
He also pointed to the growing role of municipal bonds globally and in India. As of FY26, 22 urban local bodies have raised over ₹4,500 crore through 31 issuances, underscoring their potential as a financing tool for urban infrastructure.
Strong growth in India’s capital markets
Pandey cited strong long-term expansion in India’s securities ecosystem.
Market capitalisation has risen from about ₹95 lakh crore in FY16 to around ₹463 lakh crore by April 2026. Corporate bond markets have also grown significantly, while retail investor participation has surged to about 145 million unique investors, compared with 38 million in FY19.
Primary market activity has remained robust, with 366 IPOs in FY26 raising around ₹1.9 lakh crore. Overall, equity and debt markets mobilised about ₹13.6 trillion during the year.
Mutual funds continue to be a key entry point for retail investors, with assets under management rising from ₹12 trillion in FY16 to nearly ₹82 trillion by April 2026. Monthly SIP flows have increased from around ₹3,000 crore a decade ago to over ₹31,000 crore.
Pandey also noted that systematic investment plans allow investors to start with as little as ₹250 per month, emphasising consistency and long-term investing over ticket size.
Inclusion gap remains key concern
Despite strong growth, SEBI’s Investor Survey 2025 shows a significant gap between awareness and participation. While 63% of households are aware of securities market products, only 9.5% actually invest. Urban participation stands at about 15%, compared with just 6% in rural areas.
Pandey said the focus going forward must be on “inclusive growth,” ensuring broader participation across regions and income groups.
Digital access and investor protection
He also highlighted improvements in ease of investing, including Aadhaar-based e-KYC for instant onboarding and the availability of Basic Services Demat Accounts, which offer low-cost maintenance for holdings up to ₹10 lakh.
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