On Friday, SEBI Chairperson Tuhin Kanta Pandey shared insights into India’s thriving capital markets, emphasizing their role in bolstering the country’s economy and achieving the ambitious ‘Viksit Bharat’ goal. He noted that these markets are vital for capital formation and overall economic growth.
This year, companies have raised around Rs 2 lakh crore through the primary market, signaling strong investor confidence. Pandey stated, “There’s a vast pool of domestic capital ready to be invested.” He assured that SEBI aims to streamline the capital-raising process, making it easier for businesses to obtain necessary funding.
Pandey described SEBI’s strategy as “optimum regulation,” aimed at balancing protective measures without hindering innovation. He mentioned ongoing regulatory changes and a commitment to maintaining a consultative approach with stakeholders.
He pointed out significant opportunities in India’s mutual fund sector. Currently, mutual fund assets are less than 25% of the GDP, with urban participation at only 15% and rural participation even lower, around 6%. Interestingly, a survey found that 22% of non-investors are considering investing in mutual funds within the next year. This indicates a promising potential for growth in this area.
Further, Pandey announced that SEBI plans to review short-selling and securities lending norms to align more closely with global standards. He acknowledged that India’s securities lending market is relatively underdeveloped compared to international markets. This points to a need for reforms that will enhance transparency, liquidity, and overall investor experience.
As we look at global trends, the rise of retail investors in many countries has vastly influenced capital markets. In 2020, retail trading in the U.S. surged, making up about 19% of total trading volume, according to a recent report by the Financial Industry Regulatory Authority (FINRA). Increased participation from everyday investors can lead to greater market resilience and innovation, a vision that aligns with SEBI’s goals for India.
In conclusion, as SEBI works to improve access and foster growth in India’s capital markets, the future looks promising. Enhanced investor participation and strategic regulatory changes could play key roles in driving economic progress and achieving the nation’s aspirations.
For more information on regulatory changes and market participation rates, check this report from [SEBI](https://www.sebi.gov.in/home.html) or recent analyses from [FINRA](https://www.finra.org/).
Source link
SEBI,Tuhin Kanta Pandey,Viksit Bharat,India Inc,Fundraising,Mutual Funds
