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Only about 9.5 per cent of Indian households participate in the securities market despite 63 per cent being aware of at least one investment product, highlighting a wide gap between financial awareness and actual participation, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said on Saturday.
Speaking at two separate events in Kolkata, Pandey emphasised the need to improve investor knowledge and strengthen investor protection even as India's capital markets continue to expand. Addressing a Regional Investor Seminar for Awareness organised by the National Stock Exchange (NSE), Pandey cited SEBI's Investor Survey, which also found that only 36 per cent of investors had moderate or high knowledge of securities markets. "SEBIs Investor Survey found that 63% of households knew of at least one securities-market product, yet only about 9.5% participated. Among investors, only 36% had moderate or high market knowledge," he said. He cautioned that easier access to investment products through technology does not necessarily mean investors understand the associated risks. "Market prices, tips and financial news are everywhere. But information cannot replace an understanding of products and risks," Pandey said. Earlier, addressing the Bharat Chamber of Commerce in Kolkata, Pandey highlighted the rapid expansion of India's capital markets and SEBI's efforts to simplify fundraising while strengthening investor safeguards. "The real measure is how effectively markets connect savings with productive investment, support businesses in raising capital and create opportunities for investors to participate in economic growth," he said. According to Pandey, India's market capitalisation has grown at around 17 per cent annually over the past decade, while the number of unique securities-market investors has increased fourfold since FY2018-19 to over 15 crore. He said 189 initial public offerings (IPOs) raised more than Rs 98,000 crore during April-September 2026. Highlighting growing participation in West Bengal, Pandey said the state's securities-market investor base had expanded from around 12 lakh in FY2014-15 to over 90 lakh currently, with nearly 90,000 new investors joining during October so far. On investor protection, he warned against fake trading applications, cloned websites and deepfakes being used to lure investors with promises of guaranteed returns. "Fraudsters use fake trading apps, cloned websites, social media groups and even deepfakes. Some impersonate SEBI, stock exchanges or well-known intermediaries. They promise guaranteed returns and press you to act fast," he said at the investor awareness seminar. Pandey said SEBI was expanding financial education through Project Jagrook, launched on October 5, in collaboration with stock exchanges, depositories and other market institutions. "Strong markets need informed investors. Do not invest because someone told you to. Do not invest because everyone else is doing so. Invest because you understand," he said. (ANI)
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