The Securities and Exchange Board of India (Sebi) has laid out a clear plan to expand investor participation in the Indian securities market. The regulator aims to bring 100 million more investors into the market and make the investment process simpler, safer, and more transparent.
India’s market capitalisation-to-GDP ratio has grown strongly in recent years, showing the increasing role of capital markets in driving economic growth. At the same time, new data shows a large gap between awareness and actual participation.
While many households are aware of the stock market, only a small percentage currently invest. However, a much bigger share is considering entering the market soon. Sebi wants to convert this interest into active participation.
A major reform in the works is the introduction of the Central KYC Records Registry 2.0 (CKRCY 2.0). This upgraded system aims to remove duplication in the KYC process and make onboarding smoother.
Once implemented, a single KYC done with any financial institution will be usable across others. This will make it easier to open demat accounts, start mutual fund SIPs, and complete other financial transactions without repeated verification.
Sebi also plans to improve price discovery for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These securities will now be issued through an expanded electronic bidding platform.
This change ensures that buying and selling takes place in a fair, competitive environment. For retail investors, it reduces the chances of overpaying during initial offers.
Distributors play an important role in helping new investors start their financial journey. Sebi is introducing revised incentives to encourage onboarding in smaller cities as well as among women investors.
The focus of the new structure is on transparency, accountability, and better investor protection.
Sebi is also working to protect investors in the SME IPO segment. Stronger rules and improved governance are being put in place to ensure transparency and reduce risk. These changes aim to help small and growing businesses raise funds while keeping investors safe.
To help retail investors avoid misinformation, Sebi plans to simplify the summary section of IPO offer documents. A clear and concise summary will be made available separately so investors do not have to rely on unverified sources.
Read more: Jaiprakash Associates Posts Wider Losses in Q2 FY26 Results.
Sebi’s new reforms are designed to build a market that is deeper, more inclusive, and better protected. By making processes simpler and improving transparency, the regulator hopes to bring millions of new investors into the financial ecosystem while ensuring their interests remain safeguarded.
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.
Published on: Nov 21, 2025, 11:16 AM IST
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