Executive Summary:
This document presents the Ministry of Finance's response to questions regarding the impact of stock market fluctuations in India. It addresses investor impact, losses, FPI withdrawals, government stabilization measures, investor education, and protection efforts. The data presented covers periods up to June 2025, with comparisons to previous fiscal years.
Key Points / Main Content:
Stock Market Performance and Investor Impact:
* Stock market movements are influenced by investor perceptions, global economic factors, domestic parameters, and corporate performance.
* Indian stock markets have shown positive long-term performance; Nifty 50 and Sensex increased by 5.34% and 5.11% respectively during 2024-25.
* All-India Market Capitalization increased by 6.9% to Rs. 413.76 trillion as of March 31, 2025.
* Specific investor losses are not readily available due to the granular nature of trading data.
Foreign Portfolio Investment (FPI):
* Details of monthly FPI net investment across equity, debt, hybrid, and mutual funds segments are provided from July 2024 to June 2025, totaling Rs. 10,629 Crore.
Government and SEBI Measures for Market Stability and Investor Protection:
* SEBI has implemented regulatory and surveillance frameworks to ensure market stability and protect investor interests.
* Regular market surveillance is conducted to detect abnormal price increases not aligned with company fundamentals.
* SEBI uses surveillance alerts and complaints as inputs for market intelligence.
* Trading members are required to disseminate cautionary messages to increase investor awareness.
Investor Education and Awareness Programs:
* SEBI, in coordination with stock exchanges and depositories, conducts free investor education programs nationwide.
* These programs cover investing principles, product features, risks, investor rights, and common investment scams.
* In FY 2024-25, SEBI, AMFI, and AMCs conducted programs in 724 districts, reaching nearly 32 lakh investors.
* The Saathi Mobile App was launched to offer educational resources and investment information.
* Measures have been taken to enhance investor protection and market stability related to Futures & Options (F&O) segment risks.
Impact Analysis:
Investors (Domestic and Foreign):
* Impact: Affected by market volatility and fluctuations, requiring informed investment decisions.
* Action Required: To be aware of market risks, utilize available educational resources, and exercise caution in investment strategies.
Securities and Exchange Board of India (SEBI):
* Impact: Responsible for maintaining market stability, conducting surveillance, and protecting investor interests.
* Action Required: Continue to enforce regulations, conduct surveillance, and implement investor education programs.
Trading Members:
* Impact: Required to disseminate cautionary messages to investors.
* Action Required: Comply with SEBI's mandate to provide scrip-specific cautionary information.
Association of Mutual Funds in India (AMFI) and Asset Management Companies (AMCs):
* Impact: Partners with SEBI in conducting investor awareness programs.
* Action Required: Continue participating in investor education initiatives and expanding their reach.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial regulation, and financial institutions in India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for advising the government on economic matters.
Nifty 50: A benchmark Indian stock market index representing the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.
Sensex: The benchmark index of the Bombay Stock Exchange (BSE), reflecting the performance of 30 of the largest and most actively traded stocks on the BSE.
Securities and Exchange Board of India (SEBI): The regulatory body for securities and commodity markets in India.
Foreign Institutional Investors: Investors or investment funds investing in a country from outside of that country.
Association of Mutual Funds in India (AMFI): An association of all the Asset Management Companies (AMC) in India.
Saathi Mobile App: A mobile application launched by SEBI to provide educational resources and investment information to investors.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2437
TO BE ANSWERED ON MONDAY, AUGUST 4, 2025/SRAVANA 13, 1947 (SAKA)
IMPACT OF FLUCTUATIONS IN THE STOCK MARKET
2437. SHRI TANGELLA UDAY SRINIVAS
SHRI SRIBHARAT MATHUKUMILLI:
Will the Minister of Finance be pleased to state:
(a) whether the Government has conducted any survey/study on the impact of recent fluctuations
in the Indian stock market on investors, if so, the details thereof;
(b) the details of total losses suffered by the domestic and foreign investors during the last six
months due to stock market volatility, sector-wise and category-wise;
(c) the total amount withdrawn by Foreign Institutional Investors during the last twelve months,
month-wise;
(d) the measures taken by the Government to stabilise the stock market and address the concerns
of investors, particularly retail and small investors;
(e) whether the Government has taken any awareness initiatives or financial literacy campaigns to
educate citizens about the risks and investment strategies in the stock market, if so, the details
thereof; and
(f) the steps being taken by the Government to enhance investor protection and promote confidence
in the Indian stock market amidst global economic uncertainties?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
Ans (a) and (b): Stock market movements are a function of investor perceptions along with other
factors which may include, inter-alia, global economic and geo-political uncertainties affecting
foreign capital flows, domestic macro-economic parameters, and corporate performance.
The Indian stock markets have consistently performed positively for long term investments.
During 2024-25, Indian benchmark indices Nifty 50 and Sensex increased by 5.34% and 5.11%
respectively. The all-India Market Capitalization also rose by 6.9% to Rs. 413.76 trillion as on
March 31, 2025, from Rs. 386.98 trillion as on March 31, 2024.
Determining the extent of investor losses requires a granular analysis of the trades and transactions
carried out by crores of investors. This data is not readily maintained or consolidated by Securities
and Exchange Board of India (SEBI).Ans (c ): Monthly trend in FPI investment over the last 12 months is as follows:
(Amount in Rs. Crore)
Month Total*
Jul-24 48,796
Aug-24 25,493
Sep-24 93,538
Oct-24 -96,358
Nov-24 -21,444
Dec-24 25,938
Jan-25 -77,211
Feb-25 -24,301
Mar-25 32,981
Apr-25 -20,190
May-25 30,950
Jun-25 -7,563
Total 10,629
*Data pertains to FPI net investment across equity, debt, hybrid, and mutual funds segments.
Ans (d) to (f): Securities and Exchange Board of India (SEBI) has put in place regulatory and
surveillance frameworks for effecting market stability and for the protection of interests of
investors from volatility in the stock market.
1. It conducts regular surveillance of trends in the securities markets to enhance market
integrity and safeguard interest of investors. Surveillance systems are put in place to check
the abnormal rises in the prices of securities which are not aligned with fundamentals of
companies.
2. The alerts generated by SEBI’s surveillance mechanism along with complaints alleging
non-compliance with above Regulations are treated as inputs for market intelligence by
SEBI.
3. Trading members have also been mandated to disseminate scrip specific cautionary
messages so as to increase awareness and caution the investors.
4. SEBI, in co-ordination with stock exchanges and depositories, also carries out regular
investor education and awareness programs across different parts of the country. These
free of cost programs, inter-alia, cover various topics such as basic investing principles,
product features, risks involved, investor rights and responsibilities, common features of
investment scams etc.
5. In FY 2024-25 SEBI, along with Association of Mutual Funds in India (AMFI) and Asset
Management Companies (AMC), conducted investor awareness programs in 724 districts
across 36 States and Union Territories, covering nearly 32 lakh investors. SEBI has also
launched the Saa₹thi Mobile App, readily offering educational resources and investment
information.
6. Various measures have been taken up to increase investor protection and market stability
with respect to the risks and volatility associated with the Futures & Options (F&O)
segment.
***