Why Does SEBI Chief Emphasize Financial Literacy and Awareness Campaigns?
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Synopsis
Tuhin Kanta Pandey, Chairman of SEBI, highlights the urgent need for financial literacy and investor protection in a digital era. With alarming statistics on investor knowledge, he calls for expanded awareness campaigns. Discover the insights on empowering individuals to navigate the complex financial landscape effectively.
Key Takeaways
- Financial literacy is essential for navigating the digital financial landscape.
- SEBI is expanding awareness campaigns to enhance investor protection.
- Only 36% of investors have adequate knowledge of the securities market.
- Puducherry's investor base has significantly increased.
- Over 21 crore demat accounts exist in India.
New Delhi, Nov 29 (NationPress) The Chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, emphasized the critical importance of financial literacy and investor protection in today’s increasingly digital financial environment.
To enhance investor safety, SEBI plans to broaden its multilingual and multimedia outreach efforts, building on initiatives such as SEBI vs SCAM. Additionally, the organization will utilize its new state-level offices to strengthen investor education at the grassroots level, according to Pandey.
During a regional investor awareness seminar hosted by the National Stock Exchange (NSE) in Puducherry, he pointed out that financial decisions are becoming more intertwined with everyday life and referred to financial literacy as “a foundation of empowerment, allowing individuals to grasp how to save, invest, and safeguard their hard-earned money while navigating a more interconnected and digital financial ecosystem.”
Referring to SEBI’s Investor Survey 2025, Pandey remarked that merely 36% of investors possess moderate to high knowledge of the securities markets, while 62% depend on friends, family, or social media for guidance.
“These statistics underscore that awareness does not equate to understanding. Participation without adequate knowledge can expose individuals to unnecessary risks. The chasm between awareness and action, as well as between participation and comprehension, illustrates the necessity for financial literacy to evolve in tandem with market expansion,” he stated.
Pandey highlighted that Puducherry's investor community has expanded by 5.6 times, growing from 22,000 investors in the fiscal year 2014–15 to almost 1.24 lakh currently, bolstered by a high per capita income and a literacy rate exceeding 85%.
He asserted that the Union Territory boasts a population that is “well-equipped to engage confidently with financial products.”
India currently holds over 21 crore dematerialized (demat) accounts, maintained by around 13.6 crore unique investors, with approximately one lakh new accounts being opened daily. Furthermore, total assets under management in mutual funds have surpassed Rs 80 trillion, marking a sevenfold increase over the past decade.
Point of View
We recognize the critical role of financial literacy in shaping a more informed investor base. SEBI's proactive stance on enhancing awareness is commendable, especially in a rapidly evolving digital landscape. We stand with the initiative to foster greater understanding among investors.
NationPress
29/11/2025
Frequently Asked Questions
What is the main focus of SEBI's recent campaign?
SEBI's recent campaign emphasizes financial literacy and investor protection in a digital financial landscape.
How has Puducherry's investor base changed?
Puducherry's investor base has grown 5.6 times from 22,000 in fiscal 2014–15 to nearly 1.24 lakh now.
What percentage of investors have high knowledge of securities?
Only 36% of investors have moderate or high knowledge of the securities markets according to SEBI's survey.
Why is financial literacy important?
Financial literacy is crucial for individuals to understand how to save, invest, and protect their money in a digital economy.
How many demat accounts are there in India?
India has over 21 crore dematerialized accounts held by approximately 13.6 crore unique investors.
