**Executive Summary**
This address by the Chairman of SEBI, delivered on December 1, 2025, in Chennai, highlights the economic contributions of the Southern Region of India and outlines SEBI's initiatives for market development and investor protection. The speech emphasizes the growth of Indian capital markets and SEBI's ongoing efforts to ease regulations and enhance transparency. A key focus is to develop a comprehensive awareness program for bonds, targeted at retail investors.
**Key Points / Main Content**
* **Southern Region Economy:**
* Contributes roughly 30-31% of India's GDP.
* Home to nearly ₹12 trillion of mutual fund AUM, with 65% in equity schemes.
* Tamil Nadu and Karnataka rank among the top three state economies.
* Karnataka, Tamil Nadu, and Kerala exhibit above-average securities-market penetration.
* **Indian Capital Markets:**
* Equity capital raised (April-October FY26): Over ₹2.5 trillion.
* Corporate bond issuances (April-October FY26): Almost ₹5.5 trillion.
* IPOs raised around ₹700 billion through 186 IPOs.
* Corporate bonds stand at nearly ₹55 trillion, close to 60% of bank credit.
* Mutual fund AUM grown from ₹24 trillion in 2019 to ₹80 trillion, with monthly SIPs exceeding ₹290 billion.
* Alternative investments ecosystem risen from ₹1.1 trillion (March 2019) to ~₹5.7 trillion.
* **SEBI's Initiatives:**
* Rationalising Minimum Public Offer (MPO) thresholds for companies with substantial market value.
* Enhancing scrutiny and governance norms for SME platforms.
* Modifying the anchor investor framework in IPOs to include long-term investors.
* Enabling founders to retain certain ESOPs post-listing.
* Introducing scale-based thresholds in related-party transactions (RPTs).
* Expanding the scope of Electronic Book Provider (EBP) platforms to include REITs and InvITs.
* Lowering the EBP usage threshold for bond issuances.
* Reducing the minimum face value of bonds for retail access.
* Classifying REITs as equity for index inclusion.
* Easing regulations for Alternative Investment Funds (AIFs).
* Rationalising and simplifying the Offer Document Summary.
* Dispensing with the Abridged Prospectus.
* Reviewing regulations for Stock Brokers, Mutual Funds, Settlement, and LODR.
* Developing a comprehensive awareness program on bonds for retail investors.
* Improving FPI experience through end-to-end digital registration.
* Easing KYC norms for NRI investors.
* **Investor Awareness & Education**
* 63% of households are aware of securities products, but only 9.5% have invested.
* Only 36% of investors have high to moderate knowledge of the securities market.
* Investors seek education in their mother tongues (Telugu, Tamil, Kannada).
**Impact Analysis**
**Issuers of Capital**
* **Impact:** Benefit from eased regulations and increased accessibility to capital markets through initiatives like rationalised MPO thresholds, SME platforms, and digital registration.
* **Action Required:** Understand and adapt to the new regulations and platforms to raise capital more efficiently.
**Investors (Retail & Institutional)**
* **Impact:** Benefit from enhanced transparency, investor protection measures, and expanded investment opportunities, particularly in corporate bonds and REITs.
* **Action Required:** Engage in SEBI's investor education programs, understand the risks and opportunities in the market, and leverage the new digital platforms for investment.
**Market Intermediaries (Brokers, Fund Managers, etc.)**
* **Impact:** Need to adapt to the new regulatory framework and technological advancements, focusing on compliance and providing efficient services.
* **Action Required:** Familiarise themselves with the revised regulations, update their systems, and participate in SEBI's efforts to promote investor awareness and education.
**SEBI**
* **Impact:** Tasked with implementing and overseeing the new regulations and initiatives to ensure market stability, transparency, and investor protection.
* **Action Required:** Continue to monitor market trends, conduct investor surveys, and consult with stakeholders to refine regulations and promote market development.
Key Entities Referenced
SEBI: The primary regulator of securities markets in India, the speaker is the Chairman of SEBI.
CII Southern Region: Confederation of Indian Industry, Southern Region, the event organizer and audience.
Tamil Nadu: State in southern India with a significant impact on national GDP.
Karnataka: State in southern India with a significant impact on national GDP.
LODR Regulations: Regulations concerning Listing Obligations and Disclosure Requirements, subject to SEBI's review.
Address by Shri Tuhin Kanta Pandey, Chairman, SEBI
CII Southern Region, Chennai
December 1, 2025
Mr. R Dinesh, former President, CII, Mr. Thomas John Muthoot, Mr. P. Ravichandran, members
of CII Southern Region, captains of business and industry, ladies and gentlemen - a very good
morning to all!
We are meeting amidst the ongoing impact of Cyclone Ditwah in the coastal regions of Tamil
Nadu, Puducherry and Andhra Pradesh with a hope that damage to life and property will be
minimum. We convey our solidarity and support to the people and governments of affected UT
and State governments at this juncture.
I am honoured to address this august audience comprising members from the CII's Southern
Region today. This region has emerged as one of the principal growth engines of the national
economy, accounting for roughly 30-31% of India’s GDP.
The Southern states are deeply integrated with global value chains. They are among India’s
leading destinations for FDI and important centres for manufacturing and services, exports and
R&D, powered by IT-ITES hubs and clusters of automobile and electronics, pharma and
engineering, leather and textiles and newly emerging data centres and AI industry. The region
has also strong remittance and services-led economy model, a world class healthcare industry,
tourism potential and a large proportion of Global Capability Centres (GCC). Several states
consistently do well in per-capita income and GSDP growth, driven by capital formation, physical
and social infrastructure, talent pools, innovation and digitalisation.
Tamil Nadu and Karnataka rank among the top three state economies after Maharashtra.
Southern India also plays a prominent role in capital markets, sourcing nearly ₹12 trillion of
mutual fund AUM - about 65% of which is invested in equity schemes. Karnataka, Tamil Nadu,
and Telangana rank in the top 10 states in terms of total mutual fund AUM.
States like Karnataka, Tamil Nadu, and Kerala exhibit securities-market penetration levels
above the national average1.
These states are in a position to substantially increase their economic contribution by 2047,
placing them at the heart of India’s Viksit Bharat goal.
Indian Capital Markets
Our capital markets are reliable, efficient, and fund India's productive sectors. Let me present
some data points in this regard:
• From April to October of FY26, equity capital raised has already crossed ₹2.5 trillion, while
corporate bond issuances have touched almost ₹5.5 trillion.
• The IPO pipeline remains healthy - companies have already raised around ₹700 billion
through 186 IPOs. We are globally ranked first in terms of number of IPOs and third in terms
of value of IPOs.
1 SEBI Investor survey 2025
Page 1 of 3• The corporate bond market has also strengthened significantly. Outstanding corporate bonds
today stand at nearly ₹55 trillion, close to 60% of bank credit2. This shift strengthens our
financial stability by diversifying funding channels.
• Wealth democratisation is most visible in mutual funds. AUM has grown from ₹24 trillion in
2019 to around ₹80 trillion today. Monthly SIPs now exceed about ₹290 billion.
• The alternative investments ecosystem, which channels risk capital into early-stage ventures
and new-age businesses, has risen from ₹1.1 trillion in March 2019 to ~ ₹5.7 trillion today.
SEBI's Initiatives for Market Development
Let me speak about some of SEBI’s recent initiatives:
Primary markets: Focus is on making it easier for issuers to raise capital.
• Minimum Public Offer (MPO) thresholds are being rationalised to allow companies with
substantial market value to meet public float requirements through a gradual, orderly process.
• SME platforms are opening new avenues for smaller enterprises to raise capital. We have
enhanced scrutiny and governance norms to ensure these platforms remain credible and
protect investors.
• Anchor investor framework in IPOs has been modified to now also include long-term
investors like Life Insurance and Pension Funds.
• Enabled founders to retain certain ESOPs post-listing ensures that the alignment of
incentives remains intact, while at the same time maintaining transparency and fairness.
• Scale-based thresholds have been introduced in related-party transactions (RPTs) that
balance the interests of investors and listed entities.
Corporate Bonds and Hybrid Securities: Focus is on enhancing transparency and
accessibility in this space.
• Scope of Electronic Book Provider (EBP) platforms expanded to include REITs and InvITs,
which are central to financing India’s infrastructure.
• EBP usage threshold lowered for bond issuances to improve transparency in price formation
in the corporate debt market.
• Minimum face value of bonds reduced to enable retail access through Online Bond Platform
Providers.
• REITs classified as equity - they will be included in indices in a phased manner
• Several changes have been made for ease of doing business in AIF regulations drawing on
risk-based approach to regulations. We will further facilitate Accredited Investor framework.
2 To industries and services
Page 2 of 3Way Ahead
We shall follow an ‘Optimum Regulation’ approach - fewer, yet smarter rules that improve ease
of doing business without compromising investor protection or market integrity.
While making changes in regulations, we will consult widely with all stakeholders for a balanced
outcome, because we believe that co-created market frameworks will maintain trust and
confidence as we explore wide opportunities to further develop our capital market.
Our investor survey highlights a significant challenge - while 63% of households are aware of
securities products, only 9.5% have invested. Moreover, only 36% of investors have high to
moderate knowledge about securities market.
Our Investor Survey 2025 also shows that investors are seeking investor-education in their
mother tongues. For example, Telugu and Tamil each is preferred by 7% of respondents, and
Kannada by 5% of respondents,
SEBI is committed to bridging this gap through investor campaigns. We are launching multi-
format and multi-lingual campaigns - digital, multi-media, and physical - to build a new
generation of informed, responsible investors.
We are proposing to rationalise and simplify the Offer Document Summary, to be made
available separately to investors, encouraging informed feedback and reducing reliance on
unverified tips. This will also dispense with the Abridged Prospectus, reducing compliance
for issuers.
A comprehensive review of SEBI's regulations is underway, covering Stock Brokers, Mutual
Funds, Settlement, and LODR Regulations, to eliminate redundancy and update outdated
constructs. Master circular for Stock Exchanges will be consolidated, simplified and rationalized
chapter by chapter within next few months for better clarity and ease of doing business.
We will continue our focus on building depth in our corporate bond market. A comprehensive
awareness program on bonds is needed to bring retail investors to this market. Developing
the commodities markets, both agri and non-agri, is high on our agenda.
We aim to deliver a fast and efficient FPI experience through end-to-end digital registration,
powered by paperless, digitally-signed workflows. The aim is to bring down the registration
timeline from months to days. Easing KYC norms for NRI investors is also an important
agenda.
Technology will remain a big focus- in market infrastructure institutions, in surveillance and
supervision (SupTech and RegTech), in enabling innovation, onboarding and outreach for
investors (fintech, AI).
We are committed to building markets that are efficient, transparent, and deep - markets that
remain the primary engine of India’s growth story.
Looking forward to a fruitful interaction ahead.
Thank you.
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