Speaking at the ICICI Securities India Investor Conference 2026, Pandey said capital markets are becoming a core avenue for household savings and wealth creation, reflecting a structural shift in how Indians are participating in the country’s growth story.
He said this shift is being driven not just by higher economic growth, but also by formalisation of the economy, financialisation of savings, and rising trust in financial institutions.
He highlighted that India now has around 145 million investors in the securities market, with the investor base expanding at more than 20% annually.
Mutual fund assets have also surged sharply over the years—from about ₹12 lakh crore to over ₹80 lakh crore—while household participation in capital markets continues to rise steadily.
Pandey noted that household financial savings as a share of GDP increased to 21.7% in FY25 from around 20% in FY23, supported by broader participation across financial instruments.
He said these trends point to a clear shift, with households allocating savings towards market-linked investment avenues.
He added that India’s capital markets are not just reflecting economic growth but actively enabling it by channeling household savings into productive enterprises, attracting global capital, and converting economic momentum into investable opportunities.
On market activity, he said equity issuances touched ₹4.5 lakh crore in FY26, while 366 IPOs raised around ₹1.9 lakh crore during the year. Corporate bond issuances crossed ₹9 lakh crore, underscoring the growing role of markets in capital formation. Market capitalisation has risen from about 69% of GDP a decade ago to nearly 128% currently, despite recent market corrections.
On the regulatory side, Pandey said SEBI is taking an “optimum regulation” approach, balancing investor protection with ease of access and market development. He added that the regulator is undertaking reforms to improve capital-raising efficiency, deepen corporate bond markets, facilitate foreign portfolio investment, and ease compliance requirements for intermediaries.
He also said Portfolio Management Services (PMS) regulations are under extensive review, with a consultation paper expected soon, though no timeline has been specified.
Pandey emphasised that the growing investor base places greater responsibility on regulators and intermediaries to ensure transparency, investor protection, and market integrity. He said every reform must ultimately strengthen investor confidence, adding that if investors feel informed and fairly treated, participation and market depth will continue to grow sustainably.
–With PTI inputs
