The capital markets are set to play an important role in the country’s transformation into a developed nation by 2047, said Tuhin Kanta Pandey, Chairman, Sebi, at the 16th Capital Market Conference organised by ASSOCHAM. Speaking on the theme “Growth Catalyst for Viksit Bharat @ 2047”, Pandey said that a convergence of long-term investment, infrastructure expansion, technological innovation, and deep institutional reforms will power the country’s transformation.
Opening his address with a tribute to India’s armed forces, Pandey highlighted the fundamental role of security in enabling economic prosperity. “Unless we are secure, our economy cannot prosper,” he noted.
Over the last decade, India’s capital markets have transformed into an important engine of capital formation. With over Rs 93 lakh crore raised through equity and debt, market capitalisation of listed firms surged to Rs 423 lakh crore in April 2025 from Rs 150 lakh crore in FY19. “These figures reflect strong investor confidence and robust corporate performance,” said Pandey. The Sebi chief also said that retail participation has also seen a massive uptick, with unique investors growing threefold to over 13 crore since 2019.
He further added that the mutual fund industry’s assets under management (AUM) reached Rs 70 lakh crore, with SIPs contributing Rs 2.9 lakh crore annually. Similarly, assets under AIFs have grown nearly five times to Rs. 5.4 lakh crore, highlighting their role in funding startups, infrastructure, and innovation.
On the debt front, Pandey said that over time, the market regulator has taken several steps to strengthen the corporate bond market architecture. For instance, earlier issues of private placements were usually negotiated by the issuers directly with investors or through arrangers. The process was time-consuming and inefficient. Introduction of Electronic Book Provider (EBP) platform, he addressed these issues and led to increased efficiency and better price discovery.
“Recently, we have expanded the scope of EBP platform to include issuance by REITs and InvITs as well. Now, the electronic book mechanism has been made mandatory for the debt issuances of Rs 20 crore or above (from Rs 50 crore or more, earlier). These measures would further streamline the debt issuance and broaden the overall debt market,” said Pandey.
Sharing his views on municipal bonds, the chairman said these bonds in India are still at a nascent stage but holds immense potential for fundraising and broader participation by the market players. With active participation, it can become a key source of financing for urban infrastructure.
Since 2017, municipalities across India have collectively raised Rs 2,784 crore from 17 issues. These include bonds issuance by municipal corporations of cities like Indore, Pimpri, Ahmedabad, Vadodara and Rajkot, in last couple of years.
Technology and regulatory simplification are central to Sebi’s agenda, said Pandey, with innovations like the Specialised Investment Fund and electricity derivatives (a potential tool to hedge against the volatility in energy sector) widening the investment landscape.
While commenting on REITs and InvITs, Pandey said, “We are also witnessing the increasing importance of new investment vehicles such as REITs and InvITs, which are gaining traction and have the potential to significantly support infrastructure and real estate development. These instruments offer long-term investors access to stable income streams while providing infrastructure developers a means to recycle capital and fund new projects — thereby accelerating India’s core sector growth.”
“At present, we have 6 REITs and 26 InvITs, registered with Sebi. Signifying the potential to mobilise long-term capital, REITs and InvITs have mobilised Rs.1.5 lakh crore, over the last five-years,” he said.
