India's capital markets are witnessing a significant increase in retail participation, household savings allocation and fundraising activity.
Against this backdrop, the Securities and Exchange Board of India (SEBI) is working with the Reserve Bank of India (RBI) on new measures aimed at strengthening the country's debt market infrastructure and improving liquidity in fixed-income instruments.
Speaking at the ICICI Securities India Investor Conference 2026, SEBI Chairman Tuhin Kanta Pandey outlined developments across market participation, capital formation and regulatory reforms.
As per news reports, Tuhin Kanta Pandey, Chairman of SEBI, said the regulator is collaborating with the RBI to introduce derivatives linked to corporate bond indices.
The initiative is intended to deepen India's debt market and enhance liquidity in fixed-income products.
Pandey also highlighted the growing importance of capital markets in household wealth creation.
He said capital markets are becoming a primary avenue for savings and investment, driven by economic growth, increasing formalisation of the economy, financialisation of savings and stronger trust in financial institutions.
According to him, these factors are reshaping how households participate in India's growth story through market-linked investment avenues.
India's securities market now has approximately 145 million investors, with the investor base expanding at an annual rate of more than 20%.
Pandey noted that mutual fund assets have risen substantially from around ₹12 lakh crore to over ₹80 lakh crore over the years. Household financial savings as a percentage of GDP increased to 21.7% in FY25 from nearly 20% in FY23.
He said the trend indicates a clear movement of household savings towards financial and market-linked instruments.
According to Pandey, capital markets are not only reflecting economic growth but are also supporting it by directing savings into productive businesses, attracting international capital and converting economic growth into investment opportunities.
The scale of capital formation through markets continued to expand during FY26. Equity issuances reached ₹4.5 lakh crore during the year.
A total of 366 initial public offerings collectively raised approximately ₹1.9 lakh crore. Meanwhile, corporate bond issuances crossed ₹9 lakh crore, highlighting the growing contribution of debt markets to fundraising activities.
Pandey also pointed out that market capitalisation has increased from roughly 69% of GDP a decade ago to nearly 128% currently, despite recent market corrections.
On the regulatory front, Pandey said SEBI follows an "optimum regulation" approach that seeks to balance investor protection, market development and ease of access.
He stated that the regulator is pursuing reforms to improve capital-raising efficiency, strengthen corporate bond markets, facilitate foreign portfolio investment and simplify compliance requirements for intermediaries.
Pandey further revealed that Portfolio Management Services (PMS) regulations are undergoing an extensive review. A consultation paper is expected to be released soon, although no timeline has been announced.
Read More: SEBI Considering Specialised Distributors to Boost Debt Products Access!
SEBI's collaboration with the RBI on corporate bond index derivatives reflects a broader effort to deepen India's financial markets. Alongside rising investor participation, growing mutual fund assets and strong capital-raising activity, the regulator continues to focus on market development while maintaining transparency, investor protection and market integrity.
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Published on: Jun 8, 2026, 5:43 PM IST
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