Address by Chairman SEBI - 16th Capital Market Conference (ASSOCHAM) at New Delhi - Growth Catalyst for Viksit Bharat @2047

16th Capital Market Conference (ASSOCHAM), New Delhi “Growth Catalyst for Viksit Bharat @ 2047” May 22, 2025 Distinguished industry leaders, partners in nation-building, and esteemed guests, a very good morning to you all! We are going to talk about capital markets today, both equity and debt. In this context, we all recognise a debt which we need to pay, the debt of gratitude, to our armed forces. We bow our heads to them to keep us secure. Unless we are secure, our economy cannot prosper. Let’s have a round of applause for our armed forces. It is an honour to be here today and share my thoughts on the key growth enablers that can propel India towards the ambitious yet achievable vision of becoming a Viksit Bharat—a developed nation—by 2047. Growth Catalysts for Viksit Bharat @2047 As we stand at this pivotal juncture in our economic journey, it is clear that India's transformation will be powered by a convergence of long-term investment, infrastructure expansion, technological innovation, and deep institutional reforms. The government’s commitment to building world-class infrastructure, improving ease of doing business and unleashing entrepreneurial energy has already begun to redefine the contours of our economy. Digital transformation, the emergence of AI, and the strengthening of digital public infrastructure are unlocking efficiencies and inclusion on an unprecedented scale. These developments, combined with strong macroeconomic fundamentals, policy stability, resilient financial market ecosystem are creating an enabling environment for sustained capital formation and productivity-led growth. 1While India’s banking system continues to play a vital role in credit intermediation, it alone cannot meet the vast and long-term capital requirements of a rapidly growing economy. The scale of investment needed to fund infrastructure, clean energy, innovation, and industrial expansion demands diverse and sustainable sources of financing. Capital markets bridge this gap by offering a platform for equity and debt financing, enabling businesses to access patient capital without over-reliance on debt or collateral. Capital Markets: Fuelling India’s Development The Indian securities market is not merely a facilitator of financial transactions but a powerful engine of capital formation. Our capital markets have become an essential channel through which domestic savings and foreign investments are directed into productive economic activity. This is helping fuel innovation, entrepreneurship, job creation, and infrastructure development. The Indian capital market has seen remarkable growth over the past few years. Market Size • Over the past 10 years, around Rs.93 lakh crore has been raised from the capital markets through both equity and debt issuances, supporting growth across sectors. • Our market has facilitated average equity issuance of around Rs. 2.2 lakh crore per annum, over the past decade, supporting business expansion and innovation. FY25 marked a record year, with Rs. 1.7 lakh crore raised through 320 IPOs—the highest number ever—underscoring the growing depth and vibrancy of our equity markets. • Market capitalisation of listed companies has risen from around Rs.150 lakh crore as at end of FY19 to Rs.423 lakh crore as at the end of Apr- 2025, reflecting strong investor confidence and robust corporate performance. 2• Average Daily Trading volumes have grown significantly from Rs.0.35 lakh crore in FY19 to over Rs.1 lakh crore now, indicating deeper liquidity and broader participation. Investor Participation • The number of unique investors in securities market ecosystem has almost tripled since Mar-2019 to reach over 13 crore now, signalling the growing trust of retail investors in capital markets. However, there is still a huge potential to expand further. • India’s population is predominantly young, aspirational, and increasingly financially aware. This demographic dividend presents a unique opportunity to deepen and broaden our capital markets. As per industry estimates, around one-third of Gen-Z investors are already participating in the securities market — an encouraging sign of growing financial engagement at an early age. This trend reflects not only the rising trust in formal financial systems but also signals a significant opportunity for long-term wealth creation and inclusive participation in the nation’s economic progress. Assets Under Management • The retail participation in securities market is further reinforced by the growth in the mutual fund industry, with assets under management increasing from Rs.24 lakh crore at end of Mar-2019 to Rs.70 lakh crore as at end of Apr-2025. • MF SIP flows have seen steady growth over the years, with annual contributions rising from less than Rs.1 lakh crore in FY19 to Rs. 2.9 lakh crore in FY25. As a result, SIP AUM has expanded nearly five-fold i.e. from Rs. 2.7 lakh crore in Mar-2019 to Rs.14 lakh crore as at end Apr- 2025. • Alternative Investment Funds (AIFs) are playing an increasingly important role in India’s journey towards becoming a Viksit Bharat. By 3channelising long-term capital into high-impact areas such as startups, infrastructure, innovation, and emerging sectors, AIFs are helping to bridge critical funding gaps that traditional sources may not fully address. They support risk-taking, promote entrepreneurship, and enable the development of future-ready sectors - which are the key drivers of a developed economy. The significant growth in AIF investments—from Rs. 1.1 lakh crore as of Mar-2019 to Rs. 5.4 lakh crore as of Mar-2025— reflects their growing relevance and potential to catalyse sustainable, inclusive economic growth in the decades ahead. • Portfolio Management Services (PMS), which facilitate long-term investments, have seen their assets under management grow from Rs.2.8 lakh crore in FY19 to Rs.7.2 lakh crore1 in FY25. REITs and InvITs • We are also witnessing the increasing importance of new investment vehicles such as REITs and InvITs, which are gaining traction and have the potential to significantly support infrastructure and real estate development. These instruments offer long-term investors access to stable income streams while providing infrastructure developers a means to recycle capital and fund new projects—thereby accelerating India’s core sector growth. At present, we have 6 REITs and 26 InvITs, registered with SEBI. Signifying the potential to mobilise long-term capital, REITs and InvITs have mobilised Rs.1.5 lakh crore, over the last five-years. Foreign Investments • As regards foreign investments, the long-term trend of foreign portfolio investments in India remains strong. The equity assets under custody of Foreign Portfolio Investors (FPIs) has increased from Rs.21 lakh crore in 1 AUM is exclusive of EPFO/PFs AUM of Rs.27.6 lakh crore, as at end of FY25 4FY15 to Rs. 69 lakh crore, as at end of Apr-2025, representing around 17% ownership in Indian listed companies. • Reinforcing sustained global confidence in India’s growth story, India’s share in the MSCI Emerging Markets Index has risen significantly—from less than 9% a decade back to 19.2% as at end of Apr-2025 — highlighting the country's growing weight in global portfolios. SEBI’s Role: Enabling Markets through Optimum Regulation At SEBI, we recognise that for capital markets to remain a driver of growth, we must continue to foster trust, innovation, and accessibility. Our focus remains on promoting ease of doing business in the securities market through regulatory simplification, faster approvals, and technology-driven oversight. We are committed to a framework of optimum regulation—one that ensures investor protection while allowing businesses to innovate and thrive. Building Blocks SEBI has taken various measures to create building blocks to facilitate capital formation and prepare the market ecosystem which is resilient and future ready. Some of such measures include- • Reduction in timeline of listing of shares in public issue (from T+6 to T+3 working days) • Fast tracking of the right issue process • Easing the on-boarding process of FPIs • Introduction of MF Lite framework • Upstreaming of clients’ funds to CCs to ensure clients funds are protected • Strengthening the governance of MIIs • Strengthening of corporate governance for listed companies SEBI remains committed to fostering innovation and expanding the product landscape to support the dynamic needs of our growing economy. In this 5direction, the recent initiative includes granting in-principle approval for electricity derivatives – a potential tool to hedge against the volatility in energy sector. Further, to provide more flexibility to the investors and bridge the gap between mutual funds and PMS, we have introduced a new asset class - Specialised Investment Fund (SIF). Strengthening Debt Market Over period of time, SEBI has taken several steps to strengthen the corporate bond market architecture. For instance, earlier issues of private placements were usually negotiated by the issuers directly with investors or through arrangers. The process was time-consuming and inefficient. Introduction of Electronic Book Provider (EBP) platform, addressed these issues and led to increased efficiency and better price discovery. In order to streamline the issuance process, improve transparency and liquidity in the corporate bond market, we have been taking continuous measures. Recently, we have expanded the scope of EBP platform to include issuance by REITs and InvITs as well. Now, the electronic book mechanism has been made mandatory for the debt issuances of Rs. 20 crore or above (from Rs.50 crore or more, earlier). These measures would further streamline the debt issuance and broaden the overall debt market. The Request for Quote (RFQ) and Online Bond Platform Providers (OBPP) are facilitating improved price discovery and secondary market activity. These initiatives have made fixed-income investments more accessible to institutional as well as retail investors. As a result, the total number of clients registered in OBPP segment have now increased from 3.5 lakh in FY24 to 5.6 lakh in FY25. Further, the value of trades in corporate bonds through RFQ platform has gone up by 55% to Rs.5.3 lakh crore in FY25 from Rs.3.4 lakh crore in previous year. 6Additionally, the Limited Purpose Clearing Corporation (LPCC) is gaining traction by enabling a robust framework for repo transactions in corporate bonds and ensuring better clearing and settlement mechanisms. In Mar-2025, trade volumes of LPCC has increased to over Rs.35,000 crore from modest beginning of Rs.480 crore in Jul-2023. Municipal Bond India is undergoing rapid development and urbanisation, leading to growing demand for robust urban infrastructure. The municipal bond market offers a viable means to Urban Local Bodies (ULBs) to raise funds from capital market. To create a more diversified capital market ecosystem and to strengthen urban infrastructure, we are encouraging capital raising through municipal bonds. Since 2017, municipalities across India have collectively raised Rs 2,784 crores from 17 issues. These include bonds issuance by municipal corporations of cities like Indore, Pimpri, Ahmedabad, Vadodara and Rajkot, in last couple of years. Municipal bond market in India is still at a nascent stage but holds immense potential for fundraising and broader participation by the market players. With active participation, it can become a key source of financing for urban infrastructure. Technology Technology is playing a pivotal role in reshaping the capital markets. It enhances efficiency, reduces compliance costs, and improves investor experience. Market participants must proactively adopt technology-driven solutions to strengthen internal processes and risk management frameworks. On the regulatory front, technology is a powerful enabler in strengthening surveillance, enhancing supervisory effectiveness, and minimising market misconduct. A future-ready capital market must be built on the foundation of innovation, transparency, and responsible use of technology. Today, we as a jurisdiction are recognised as a pioneer in adopting technology driven market 7solutions and supervisory tools, setting benchmark for regulatory effectiveness globally. Optimum Regulation In securities market ecosystem, we are focussing on optimum regulation. We intend to simplify regulations, remove redundant provisions and facilitate ease of compliance, while ensuring high market integrity and robust investor protection. To achieve these objectives, we need support from the industry as a trusted partner. Call to Action: Deepening Markets for a Developed India As we look to the future, the path to Viksit Bharat will be shaped by our collective commitment to inclusive, transparent, and growth-oriented financial systems. The capital markets are not just enablers—they are integral to this transformation. I urge industry leaders present here today to continue building responsible enterprises, uphold the highest standards of governance, and actively contribute to deepening our markets. Together, let us work towards creating a capital market ecosystem that is not only globally competitive but also aligned with the aspirations of a New India. A Viksit Bharat is within reach— and the securities market will play a defining role in making that vision a reality. Thank you. 8