India's capital markets are increasingly becoming a key channel for household savings and wealth creation, with equity issuances crossing Rs 4.5 lakh crore and corporate bond issuances exceeding Rs 9 lakh crore in FY26, Sebi Chairman Tuhin Kanta Pandey said on Monday.
Speaking at the ICICI Securities India Investor Conference 2026, Pandey said India's growth story is increasingly being driven by the formalisation and financialisation of savings, alongside growing trust in financial institutions.
"Capital markets are increasingly becoming a core avenue for household savings and wealth creation," Pandey said.
The Sebi chief highlighted the rapid expansion of India's capital markets despite a challenging global environment marked by geopolitical tensions, including the ongoing conflict in West Asia, which has affected inflation, trade flows, exchange rates and external balances.
Pandey said India remains one of the world's fastest-growing major economies, with growth estimated at 7.7% in FY26, although external headwinds are expected to moderate growth to around 6.6% in FY27.
He noted that India's growth continues to be supported by domestic consumption, public investment and improving private sector participation. Public capital expenditure has nearly doubled as a share of total government expenditure, rising from about 12% in FY21 to 23% in FY26.
Against this backdrop, India's capital markets have witnessed significant expansion. According to Pandey, IPO activity remained robust in FY26, with 366 public issues collectively raising around Rs 1.9 lakh crore. Total equity issuance crossed Rs 4.5 lakh crore during the year, while corporate bond issuances exceeded Rs 9 lakh crore.
Market cap has also expanded sharply, rising from about 69% of GDP a decade ago to nearly 128% currently. The investor base has grown substantially as well. India now has around 145 million investors in the securities market, with the number growing at more than 20% annually. Mutual fund assets have surged from about Rs 12 lakh crore to more than Rs 80 lakh crore over the past decade.
Household participation in financial markets has also increased steadily. Household financial savings as a percentage of GDP rose to 21.7% in FY25 from around 20% in FY23, reflecting a gradual shift in savings behaviour.
Also read: Sensex down over 10K points from Dec peak. Should MF investors buy the dip, hold positions, or wait on sidelines?
Pandey said Sebi's regulatory approach remains focused on "optimum regulation" that balances investor protection, market integrity and growth.
The regulator has reduced IPO timelines, streamlined rights issues and eased listing norms for large issuers. On the debt side, Sebi is working with the Reserve Bank of India to introduce derivatives linked to corporate bond indices and improve liquidity through market-making frameworks.
Pandey also outlined measures aimed at improving ease of doing business, including simplified compliance requirements for brokers, streamlined reporting mechanisms and efforts to reduce friction for foreign portfolio investors through the SWAGAT single-window onboarding framework.
Looking ahead, Sebi is reviewing variable net-worth requirements for brokers, examining improvements in IPO price discovery through pre-open auctions and considering a more flexible framework for mutual fund liquidity management through intraday borrowing. Sensex down over 10K points from the Dec peak. Should MF investors buy the dip, hold positions, or wait on the sidelines?
Pandey said all future reforms would continue to be guided by a simple principle: keeping the investor at the centre of market development.
"If the investor feels informed, protected and fairly treated, confidence will follow, participation will deepen, and markets will continue to grow on a strong and sustainable foundation," he said.
