The Securities and Exchange Board of India (SEBI) expects to double the number of investors in India’s securities markets over the next three to five years through simpler rules, easier onboarding and wider outreach beyond major cities.
Speaking at the CII Financing Summit on Monday, SEBI Chairman Tuhin Kanta Pandey said there is a large gap between investor awareness and participation, and bridging that gap will be central to the regulator’s agenda. “SEBI’s role over the next 3-5 years is to double the number of investors in the market,” he said.
Citing SEBI’s latest survey, Pandey said 63 per cent of households are aware of the securities market, but only 9.5 per cent invest. Another 22 per cent are considering investing in the coming year, indicating strong potential for growth if access and understanding improve.
He said market development must be supported by both stronger supply, through equity, debt and other issuances, and wider demand from households and smaller towns. SEBI has already revised distributor incentive structures to encourage onboarding of first-time investors from B-30 cities, and to increase the participation of women in mutual funds.
SEBI regulations
A comprehensive review of SEBI’s regulations is underway to eliminate redundancy, remove ambiguity and update outdated constructs. “Our agenda is not about adding more rules. It’s about shaping a smarter rulebook. One that is simpler to understand, proportionate to the risks it seeks to address and supportive of innovation,” he said.
The regulator has focused on simplifying market processes in recent years so that issuers, investors and intermediaries face fewer hurdles. The digitisation of onboarding and the unified KYC framework have reduced duplication, and the proposed CKYC 2.0 aims to create seamless KYC across the financial sector. SEBI is also examining ways to allow NRIs to complete KYC and open demat accounts from overseas without mandatory physical presence in India.
For foreign portfolio investors, the regulator plans to shorten registration timelines to a few days by pushing digital submissions and streamlining documentation. Pandey said FPI flows are now balanced by strong domestic investor participation, which remains a stabilising force for the markets.
“There will always be external risks, whether trade-related or from global financial markets. But India’s growth story is supported by solid fundamentals, demographics, a deep talent pool, and sustained public and private investment. These factors, combined with investor trust, act as a shield against shocks,” he said.
In FY26, equity capital has crossed ₹2.5 lakh crore, while corporate bonds have touched almost ₹5.5 lakh crore in 7 months. These numbers reflect something deeper than capital buoyancy. They reflect public confidence that public markets can meet long-term financing needs efficiently and reliably, he said.