India is focused on establishing its capital markets as a reliable hub for long-term international investors amidst growing volatility and geopolitical uncertainties globally, according to Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey. Speaking at the Kotak Investor Conference, Pandey emphasized that modern financial markets are now valued for resilience, credibility, and predictability rather than just returns. He highlighted India’s appeal to investors due to its scale, growth potential, and efforts towards transparent and well-governed markets.
SEBI’s primary goal is to safeguard investors while facilitating capital raising and business growth, Pandey stated. He noted the increasing significance of capital markets in translating India’s economic progress into tangible investment prospects. With over 140 million unique investors in India, there is a gradual shift from physical assets to financial investments in household savings. Foreign portfolio investors play a crucial role in the country’s markets, complemented by domestic institutions that provide stability during global uncertainties.
The equity assets held by foreign investors have surged over threefold since FY16, reaching around Rs 71 trillion, while the total foreign portfolio assets, including debt, amount to about Rs 78 trillion. SEBI’s regulatory approach focuses on ‘optimum regulation,’ aiming to balance compliance requirements for genuine businesses without compromising on systemic risk prevention. Pandey highlighted initiatives like the SWAGAT–FIs framework, designed to streamline access for trusted foreign investors and simplify onboarding for Foreign Portfolio Investors (FPIs). Additionally, reforms such as the closing auction session in equities have been implemented to enhance price discovery processes.
