What India needs—deeper capital market participation: Sebi chief

New Delhi: A fast-growing economy like India needs a blend of traditional bank credit and robust equity and debt financing through capital markets for its long-term needs, Securities and Exchange Board of India chairperson Tuhin Kanta Pandey said.

“The scale of investment needed to fund infrastructure, clean energy, innovation and industrial expansion demands diverse and sustainable sources of financing,” the Sebi chief said at an event organised on Thursday by industry body Assocham.

“Capital markets bridge this gap by offering a platform for equity and debt financing, enabling businesses to access patient capital without overreliance on debt or collateral,” he added.

India aims to become a developed nation or a high-income economy by 2047, its centenary of independence.

With a current GDP of about $4.2 trillion, India ranks as the world’s fourth-largest economy.

To reach its 2047 target, the country must sustain an average annual growth rate of 7.8% over the next two decades, according to World Bank estimates, a trajectory that could propel India’s GDP to $23 trillion or higher.

However, achieving this ambitious goal will require sweeping reforms and investments across infrastructure, education, and capital markets to foster sustainable and inclusive growth.

“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 investments, infrastructure expansion, technological innovation and deep institutional reforms," Pandey said.

“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,” he added.

On NSE’s IPO plan

On the National Stock Exchange of India Ltd’s plans for an initial public offering, Pandey said he hoped issues surrounding the IPO would be resolved soon.

NSE’s IPO proposal has been pending with Sebi due to concerns over executive compensation, technology systems, and majority ownership in the Clearing Corporation of India Ltd, among other issues.

Pandey, however, didn’t give any timeline for when NSE’s IPO proposal would be approved.

The Sebi chief also said the regulator is focused on streamlining the securities market ecosystem through optimising regulation, simplifying rules, removing redundancies, and easing compliance, while maintaining strong market integrity and investor protection.

He also urged market participants to proactively adopt technology-driven solutions to enhance internal processes and strengthen risk management frameworks.

“A future-ready capital market must be built on the foundation of innovation, transparency and responsible use of technology,” he added.