‘Citizens diverting more and more savings towards Indian stock markets’:Capital markets increasingly emerging as core avenue for household savings, says Sebi

Capital markets increasingly emerging as core avenue for household savings, adds Sebi Capital markets are increasingly emerging as a core avenue for household savings and wealth creation in India, reflecting a structural shift in how Indians are investing and participating in the country’s growth story, Sebi, chairperson Tuhin Kanta Pandey said on Monday, according to news agency, PTI. Capital markets are increasingly becoming a core avenue for household savings and wealth creation. -Sebi, chairperson Tuhin Kanta Pandey PMS money to become relatively safer for citizens On the Portfolio Management Services (PMS) regulations, the SEBI chief indicated that extensive deliberations are underway and a consultation paper will be released soon. However, he declined to specify a timeline. How many stock market investors in India? Pandey said India’s economic rise is not only about higher growth numbers but also about the formalisation of the economy, financialisation of savings and growing trust in institutions.
Highlighting the growing depth of Indian markets, Pandey said the country now has around 145 million (14.5 crore) investors in the securities market, with the investor base expanding at more than 20% annually. How much money have people invested in mutual funds? He noted that mutual fund assets have surged from about ₹12 lakh crore to over ₹80 lakh crore over the years, while household participation in capital markets has continued to rise steadily. Household savings account for over 21% of GDP Pandey said household financial savings as a share of GDP increased to 21.7 per cent in FY25 from around 20 per cent in FY23, aided by broader participation across financial instruments. Pandey added that households are increasingly allocating savings towards market-linked investment avenues. Indian stock market is bigger than the country’s GDP Pandey went on to say that market capitalisation has risen from about 69% of GDP a decade ago to nearly 128%, currently.