In August 2025, India's Securities and Exchange Board (SEBI) convened its annual conference, outlining an agenda focused on deepening capital markets through technological advancements and innovative strategies. SEBI Chairman Madhabi Puri Buch introduced a significant proposal for a pilot program allowing the trading of shares in pre-Initial Public Offering (IPO) companies, aiming to boost market liquidity and broaden participation.
India's capital markets are recognized as the world's fourth-largest, reflecting substantial growth and increasing investor engagement. The market is supported by approximately 130 million investors, with ₹4.3 trillion raised in primary markets during fiscal year 2025. Over the past three years, cash market volumes have doubled, and SEBI is actively pursuing further expansion. The growth in mutual fund assets, now exceeding ₹75 trillion, signifies a sixfold increase in a decade, indicating a rise in household savings and confidence in managed investments.
Industry leaders are advocating for the expansion of Exchange Traded Funds (ETFs), the development of the fixed-income market, and the introduction of new asset classes like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to create a more diversified investment landscape. The National Stock Exchange (NSE) exemplifies the technological advancements driving this expansion, processing over 2,000 crore transactions daily with nanosecond response times. Its market capitalization has reached ₹450 lakh crore ($5.2 trillion), a 125-fold increase over 30 years, with retail participation growing sevenfold. This democratization of market access is further evidenced by over 20 crore demat accounts, with a significant 80% originating from smaller cities.
To enhance investor protection and combat financial crime, SEBI will implement a UPI validation system from October 1, 2025. This measure will authenticate UPI handles of SEBI-registered intermediaries, ensuring payments are directed only to validated entities and mitigating cyber fraud risks. SEBI is also integrating Artificial Intelligence (AI) with stringent accountability measures and data controls, aiming to simplify regulations while prioritizing investor safeguarding.
Between March and June 2025, SEBI approved several ease-of-business proposals for listed companies, Alternative Investment Funds (AIFs), and foreign portfolio investors, signaling a commitment to a more streamlined regulatory environment. Despite global economic uncertainties, India's capital markets are positioned as a key engine for national growth, contributing to the nation's goal of developed status by 2047. The increasing role of retail investors, now accounting for over 45% of the cash market turnover, adds depth and resilience. The trend of younger investors, particularly those under 30, comprising 48% of all investors, highlights a dynamic shift towards greater financial engagement and a willingness to explore diverse investment avenues.