Sebi Chairman Tuhin Kanta Pandey on Monday said India’s unique investor base could double over the next three to five years, driven by rising household participation and strong economic growth. Speaking at the CII National Financing Summit, he noted that equity ownership in India remains underpenetrated despite steady market expansion.
Pandey said sustained economic growth will be essential for channeling more domestic savings into capital markets. He highlighted that Indian households and domestic institutions now collectively hold a larger share of listed equities than foreign portfolio investors. India currently has around 135 million unique market participants.
A recent Sebi survey found that while 63% of respondents are aware of the securities market, only 9.5% of households actually invest. Another 22% plan to enter the market within a year. Pandey said this rising interest puts “a big responsibility” on regulators and intermediaries to ensure safe and reliable market access.
Despite global uncertainties, he said India’s markets remain resilient due to strong fundamentals, demographics and steady public and private investment. Sebi is working with the Reserve Bank of India to monitor systemic risks, including liquidity stress in mutual funds.
On emerging technologies such as AI, algorithmic systems and tokenisation, Pandey said Sebi’s approach is rooted in “innovation with responsibility,” emphasising the need to manage risks without curbing progress. He also warned that the surge in digital investing increases the threat of cyber fraud, making investor protection a key priority in the coming years.