SEBI Report Reveals Low Household Participation in Securities at 9.5%

The Securities and Exchange Board of India (SEBI) recently released its Investor Survey 2025, shedding light on the current landscape of household participation in securities markets. Despite growing awareness of financial products, actual engagement among Indian households remains limited.

Awareness vs Participation

The nationwide survey, conducted by research firm Kantar in collaboration with SEBI, AMFI, and major market institutions, covered over 90,000 households across 400 cities and 1,000 villages. Results indicate that 63 percent of households, roughly 213 million, are aware of at least one securities product. 

However, only 9.5 percent, or around 32.1 million households, actively participate in the market. Urban households show higher engagement at 15 percent compared with just 6 percent in rural areas. Among states, Delhi leads with 20.7 percent participation, followed by Gujarat at 15.4 percent. The data highlights a significant gap between awareness and actual investment behaviour.

Preference for Safety Over Risk

The survey found that nearly 80 percent of Indian households prefer capital preservation over high returns. This risk-averse approach is also reflected in younger investors, with 79 percent of Gen-Z households showing cautious investment behaviour. Such conservative tendencies indicate a strong preference for stability and security in financial planning.

Challenges Limiting Investment

Several factors continue to deter households from participating in the securities market. Complex processes, limited financial knowledge, lack of trust, and fear of potential losses were cited as major hurdles. These challenges appear to be more pronounced among rural investors, contributing to the wide urban-rural participation gap.

Opportunities for Growth

Despite low participation, there are signs of potential growth. About 22 percent of non-investors who are aware of securities products expressed an intention to start investing within a year. This indicates a sizeable untapped market that could benefit from improved access and education.

The report also highlighted demand for simpler digital platforms, lower entry barriers, and financial education in regional languages. Enhancing these areas could help bridge the gap between awareness and active investment.

Satisfaction With Grievance Redressal

Awareness of SEBI’s grievance redressal system remains limited among investors. However, those who have used the system reported high satisfaction, with 90 percent expressing positive experiences. This reflects the effectiveness of existing support mechanisms for investors navigating the securities market.

Read more:SEBI's New Mutual Fund Rule May Change How You Invest

Conclusion

The SEBI Investor Survey 2025 underscores a key challenge in India’s financial ecosystem: while awareness of securities products is improving, actual household participation remains low. 

Addressing barriers such as complex processes, limited financial literacy, and trust issues could unlock significant growth potential in the securities market, particularly among rural and younger investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.