How are Capital Markets Central to the 'Viksit Bharat' Initiative and What Opportunities Do Mutual Funds Hold?
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Synopsis
In a recent statement, SEBI Chairperson Tuhin Kanta Pandey revealed that India's capital markets are pivotal for achieving the 'Viksit Bharat' vision. With a significant amount raised this year, the potential for mutual funds remains vast, indicating robust investor confidence and opportunities for growth.
Key Takeaways
- Capital markets are essential for achieving the 'Viksit Bharat' objective.
- SEBI is committed to enhancing the capital-raising process.
- Domestic capital has significant potential to be deployed.
- Mutual fund penetration is currently low, indicating growth opportunities.
- Regulatory reforms are underway to improve transparency and liquidity.
Mumbai, Nov 7 (NationPress) SEBI Chairperson Tuhin Kanta Pandey emphasized that India’s ongoing economic resilience will be primarily fueled by its capital markets, which are vital for the nation’s advancement towards the 'Viksit Bharat' vision and essential for capital formation.
Speaking at an event, Pandey remarked that capital markets play a pivotal role in fulfilling the country’s developmental goals, revealing that businesses have successfully raised around Rs 2 lakh crore from the primary market this year, reflecting strong investor confidence.
“There exists a substantial pool of domestic capital eager to be utilized,” Pandey stated, affirming that SEBI is dedicated to streamlining and accelerating the capital-raising procedures, thus allowing enterprises to secure funds more effectively.
“We act as facilitators of capital formation, and our objective is to assist companies in raising capital effortlessly to drive India’s growth and transformation,” the SEBI Chairperson noted.
He described the regulator's methodology as “optimum regulation”, which modifies guidelines without hindering innovation.
“We have implemented numerous regulatory adjustments and will persist with a consultative approach,” he mentioned.
Pandey underscored structural prospects, highlighting that mutual fund assets under management are below 25 percent of GDP, with urban involvement at about 15 percent and rural participation at 6 percent.
“There is immense potential for expanding mutual fund outreach,” Pandey said, indicating that 22 percent of non-investors who are aware of mutual funds intend to invest in the upcoming year.
The SEBI Chairman also disclosed that the regulator plans to conduct a thorough examination of short-selling and securities lending and borrowing standards to bring them in line with global benchmarks.
However, Pandey acknowledged that India’s securities lending market is currently underdeveloped compared to other markets, reiterating the commitment to reforms aimed at boosting transparency, liquidity, and investor-friendliness.
Point of View
It is evident that bolstering capital markets is vital for India's economic development. The commitment of SEBI to enhance investor participation and streamline regulations is commendable and aligns with the nation's objectives for sustainable growth.
NationPress
07/11/2025
Frequently Asked Questions
What is the significance of capital markets for India's economy?
Capital markets are crucial for economic growth as they facilitate capital formation, enabling businesses to access necessary funds for expansion and innovation.
What role does SEBI play in capital markets?
SEBI acts as a regulator, ensuring optimal regulation that fosters investor confidence and supports the capital-raising process for businesses.
How much have companies raised from the primary market this year?
Companies have raised approximately Rs 2 lakh crore from the primary market this year, showcasing strong investor confidence.
What opportunities exist in the mutual fund sector?
There is significant potential to deepen mutual fund penetration, especially since a large percentage of non-investors plan to invest in the coming year.
Are there any upcoming regulatory changes in India’s securities market?
Yes, SEBI is conducting a comprehensive review of short-selling and securities lending norms to align them with global standards.
