SEBI Chairman Tuhin Kanta Pandey has announced a significant partnership with the Reserve Bank of India (RBI) to introduce derivatives linked to corporate bond indices, marking a major step toward deepening India's debt market and improving liquidity in fixed-income instruments. As per CNBC TV18, this initiative was outlined at the ICICI Securities India Investor Conference 2026, where Pandey emphasized that capital markets are becoming a core avenue for household savings and wealth creation, reflecting a structural shift in how Indians participate in the country's growth story. The regulator is also working on a market-making framework to improve liquidity in corporate bond markets, with coordination with the RBI remaining central to these changes.
India's capital markets are witnessing unprecedented growth, with household financial savings as a share of GDP increasing to 21.7% in FY25 from around 20% in FY23, supported by broader participation across financial instruments. According to CNBC TV18, India now has around 145 million investors in the securities market, with the investor base expanding at more than 20% annually. Mutual fund assets have surged sharply from about ₹12 lakh crore to over ₹80 lakh crore, while corporate bond issuances have crossed ₹9 lakh crore and market capitalisation has risen to about 128% of GDP, up from approximately 69% of GDP a decade ago. Pandey noted that equity issuances touched ₹4.5 lakh crore in FY26, with 366 IPOs raising around ₹1.9 lakh crore, while market capitalisation has risen from about 69% of GDP a decade ago to nearly 128% currently, despite recent market corrections.
The Securities and Exchange Board of India (SEBI) is significantly strengthening its technology-driven approach to combat online investment frauds, with G Ram Mohan Rao, Executive Director, SEBI, announcing new surveillance initiatives at a FICCI conference on next-generation fraud investigations. As per The Hindu BusinessLine, SEBI has already rolled out investor-protection initiatives including SEBI Check, App Check and UPI verification mechanisms, with the regulator working on further measures to curb frauds in the securities market. Rao noted that frauds have reduced in the market, especially in the securities market, but they are still going on, emphasizing the need for additional technological tools to maintain investor protection. The regulator's approach is increasingly centred on identifying and stopping frauds before investors suffer losses, with conventional investigations alone unable to keep pace with the scale of digital fraud.
SEBI is taking an 'optimum regulation' approach, balancing investor protection with ease of access and market development, as outlined by Pandey at the investor conference. The regulator is undertaking comprehensive reforms to improve capital-raising efficiency, deepen corporate bond markets, facilitate foreign portfolio investment, and ease compliance requirements for intermediaries. Additionally, Portfolio Management Services (PMS) regulations are under extensive review, with a consultation paper expected soon, though no specific timeline has been provided. Pandey emphasized that the growing investor base places greater responsibility on regulators and intermediaries to ensure transparency, investor protection, and market integrity, stating that every reform must ultimately strengthen investor confidence, adding that if investors feel informed and fairly treated, participation and market depth will continue to grow sustainably.
Indian equity markets ended lower on Wednesday as investor sentiment remained under pressure due to fresh tariff concerns from the United States, continued tensions in West Asia and reports of fresh attacks in Ukraine. The NSE Nifty 50 index closed at 23,405.60, down 77.95 points or 0.33 per cent, while the BSE Sensex settled at 74,346.17, declining 303.67 points or 0.41 per cent. Despite opening with weakness, markets witnessed a recovery from the day's lows, led by gains in banking stocks. According to Geojit Investments Limited, the rebound was primarily driven by a sharp recovery in banking stocks, while IT stocks emerged as the biggest laggards due to profit booking and persistent global uncertainties. Pandey highlighted that India's capital markets are not just reflecting economic growth but actively enabling it by channeling household savings into productive enterprises, attracting global capital, and converting economic momentum into investable opportunities.
