India’s securities markets are becoming increasingly stable and globally competitive for long-term capital creation, with strong international investor confidence, said Sebi Chairman Tuhin Kanta Pandey. He noted that market capitalisation remains robust at $4.4 trillion, with around $154 billion raised through equity and debt markets in FY26.
His remarks come amid ongoing volatility and sustained foreign outflows from Indian equities, driven by geopolitical tensions in West Asia since late February. Despite the recent correction, India continues to be viewed as one of the more expensive markets among Asian and other emerging economies.
Pandey was speaking at the IMF–World Bank Spring Meetings in Washington, DC, organised by the Confederation of Indian Industry (CII) and the US-India Business Council (USIBC). Discussions focused on the evolving capital markets framework, regulatory strategies, and long-term growth prospects.
He also pointed out that India’s financial system is playing a growing role in driving economic growth, backed by a projected GDP growth of 7.6 percent for the current fiscal year, and noted India’s top global ranking in IPO volumes and third position in capital raised in 2025.
Further, he added that foreign portfolio investor (FPI) assets stand at nearly $780 billion, underlining the depth of global participation in Indian markets. FPIs currently hold about 17% of the country’s total listed equity, reflecting India’s position as a standalone investment destination.
However, in 2025, FPIs were net sellers, offloading equities worth ₹1.65 lakh crore. The selling trend has continued into 2026, largely due to the US-Iran conflict and its impact on the rupee, crude oil prices, and broader commodity markets.
To improve ease of doing business, Sebi has introduced several reforms, including the T+1 settlement cycle, streamlined IPO timelines, net settlement mechanisms for FPIs, relaxed foreign investment norms, and strengthened governance frameworks for market infrastructure institutions.
Looking ahead, Sebi plans to simplify KYC norms for non-resident Indians, streamline capital-raising processes, ease FPI registration, and develop dedicated digital portals for foreign investors.
The regulator also emphasised the need for sustained investment and adaptive regulatory support in emerging sectors such as deep technology, climate technology, and advanced manufacturing.
