The Securities Exchange Board of India (SEBI) Chairperson, Madhabi Puri Buch, recently announced the upcoming launch of a low-cost ₹250 systematic investment plan (SIP) by mutual funds, with the aim of promoting financial inclusion. This initiative is expected to encourage more citizens to participate in the wealth creation of the nation.
Buch highlighted the significant growth in the Assets Under Management (AUM) of mutual funds as a percentage of bank deposits in recent years, increasing from under 16% to over 30%. She also mentioned that there are approximately 11.5 crore unique demand accounts and 5.3 crore unique mutual fund investors in India, indicating a growing interest in mutual funds among various investor groups.
Furthermore, Buch emphasized the resilience of Indian equities and the attractiveness of the Indian markets for foreign investors. India’s weight in the MSCI Emerging Market Index has been steadily increasing, currently standing at just under 20%. This means that global mutual funds and asset banks investing in emerging markets automatically allocate around 20% to India.
In terms of capital fundraising from capital markets, including equity and debt instruments, Buch projected a significant jump to ₹14.27 lakh crore in FY25 from ₹11.8 lakh crore in FY24. She noted that financial entities raised ₹3.3 lakh crore in equity and ₹7.3 lakh crore from the debt markets, amounting to an overall capital raise of ₹10.7 lakh crore in the last nine months of the fiscal year.
Additionally, Buch highlighted the growing contribution of real estate investment trusts, infrastructure investment trusts, and municipal bonds to the overall capital raising in India. She also discussed the strength of the primary bond market in India, where a significant portion of capital formation takes place.
In terms of technological advancements, Buch mentioned that SEBI is leveraging artificial intelligence (AI) for faster processing of applications. She noted that several AI-driven projects are already underway within the organization, enhancing operational efficiency and effectiveness.
Overall, the initiatives and trends highlighted by Buch reflect the continued growth and development of the Indian capital markets, with a focus on boosting financial inclusion, attracting foreign investments, and leveraging technology for improved regulatory processes.
