The securities market is no longer a passive mirror of the economy. It's an active partner in national building: SEBI Chairman, Tuhin Kanta Pandey at CII Financing Summit
FinTech BizNews Service
Mumbai, November 17, 2025: Shri Tuhin Kanta Pandey, the Chairman of the Securities and Exchange Board of India (SEBI), today spoke about how India's security markets have evolved as more deep, modern, inclusive, and aligned with India's aspirations over the next decade.
Addressing participants at the CII Financing Summit 2025, Shri Pandey said “the Indian security market is no longer a peripheral source of financing. It's now a central driver of India's long-term investment cycle”. The fact that over the past 10 years, capital markets, equity and debt together have facilitated average issuances of roughly INR 9.5 lakh crore every year is reflective of the confidence among issuers that Indian securities markets can meet long-term financing needs efficiently, reliably, and at scale.
India's market capitalization to GDP ratio has jumped from around 69 per cent in FY16 to more than 130 per cent as of today. India's market capitalization to GDP ratio has jumped from around 69 per cent in FY16 to more than 130 per cent as of today. This is a clear sign of an evolving market where productive sectors are increasingly being funded through transparent, fair, and competitive market mechanisms. However, future progression will be contingent upon the depth of partnerships between regulators and industry, issuers and investors, urban capital markets and emerging savers in smaller towns, highlighted the SEBI Chairman. Stressing on more collaborative initiatives, he stressed that “Regulators, industry leaders and citizens should work together to shape markets that are deep, inclusive and globally competitive”. This would also impart greater resilience to Indian markets against any unseen external shock that might come.
For further deepening of the markets, it is critical that both supply and demand evolve in a balanced manner. Shri Tuhin Kanta Pandey listed measures undertaken by the regulator (SEBI) in the recent past to expand participation from smaller towns and underserved segments. For instance, revised distributor incentive structures encourage onboarding of first -time investors from B30 cities and aim to increase women investors in the mutual fund industry.
Citing data from an investor survey by SEBI, Shri Pandey, said that while 63 per cent of the households are aware of the securities market, only about 9.5 per cent of these are investing in securities market. Encouragingly, 22 per cent of these households are looking at investing in the securities market over the next 12 months, which provides a huge scope for increasing the number of investors in the market. “SEBI’s role over the next 3-5 years is to double the number of investors in the market”, said the SEBI Chair. He stressed that there is a need to bridge the gap between investor awareness and participation in the securities market, underlining the need to educate them to ensure informed investments.
That said, the investors’ participation and trust in the system go hand in hand. On enhanced governance of institutions, the SEBI chair mentioned several measures undertaken by the regulator to improve governance of MIIs and in the derivatives markets. A comprehensive review of SEBI's regulations is underway to eliminate redundancy, remove ambiguity and update outdated constructs, informed Shri Tuhin Kanta Pandey. “Our agenda is not about adding more rules. It's about shaping a smarter rulebook. One that is simpler to understand, proportionate to the risks it seeks to address and supportive of innovation”, reiterated the SEBI Chair.
He reaffirmed SEBI’s commitment to simplifying market processes so that every stakeholder, issuer, investor or intermediary interacts with the market smoothly. For example, the digitization of onboarding and the establishment of a unified, authenticated KYC framework in securities market have reduced duplication and made access more seamless. Going forward, the proposed CKRCY 2 .0 will provide a seamless KYC for the entire financial sector. For FPIs, SEBI plans to shorten the registration process to just a few days, which is essential for strengthening India’s position as an attractive investment destination. Shri Pandey exuded confidence in India's investment climate, noting that FPI participation now is well balanced by strong domestic investor participation, which remains a vital stabilizing force for the economy.
On greater integration of technology, the SEBI chair said that the regulatory stance has been to facilitate innovation with responsibility and accountability. Derisking while still enabling innovation is the strategic way forward, explained Shri Pandey.
While concluding the session, Co-moderators – Mr. Chandrajit Banerjee, Director General, CII and Dr. Janmejaya Sinha, Co-Chairman, CII Economic Affairs Council and Chairman – India, the Boston Consulting Group, agreed that the regulator’s initiatives as outlined by the Chair demonstrate SEBI’s commitment on the four Ts - Trust, Transparency, Teamwork, and Technology.
