NEW DELHI, Feb. 25 — Securities and Exchange Board of India Chairman Tuhin Kanta Pandey said Wednesday that about USD 105 trillion has been raised through equity and debt issuances in India’s markets between fiscal year 2016 and fiscal year 2026, through January, highlighting the strong growth and resilience of the country’s capital markets.
Pandey said the initial public offering market has been particularly vibrant, reflecting strong investor confidence and market appetite.
“In FY26 (April–January), companies raised about USD 1.8 trillion through 329 IPOs, compared to around USD 1.7 trillion raised through 320 IPOs in FY25. This reflects not just market appetite, but issuer confidence in public markets as a platform for long-term capital,” he said.
He added that regulatory measures have been implemented to strengthen anchor investor participation in IPOs. The anchor investor portion has been increased to 40 percent, with defined allocations for mutual funds, life insurers, and pension funds. These steps are aimed at encouraging structured participation by long-term domestic institutions and improving the quality and stability of anchor investments.
Pandey also noted steady expansion in the corporate bond market, which has grown at a compound annual growth rate of about 12 percent since FY15, reaching Rs 58.2 trillion as of the end of January 2026.
The asset management industry has also experienced significant growth. Mutual fund assets under management have increased from approximately Rs 12 trillion in FY16 to nearly Rs 81 trillion currently, reflecting broader investor participation and market expansion.
Foreign portfolio investors continue to play a crucial role in India’s financial ecosystem. Equity assets under custody held by FPIs have grown more than threefold to about Rs 71 trillion by the end of January 2026, compared to about Rs 19 trillion at the end of FY16. Including debt and other instruments, total FPI assets under custody stand at approximately Rs 78 trillion.
“FPI flows are inherently cyclical. They respond to global liquidity conditions, currency movements, relative valuations, and policy stances of major central banks. What adds strength to India’s market structure today is the growing counterbalance from domestic institutional investors. This makes our markets more resilient during global risk-off phases,” Pandey said.
He also highlighted India’s performance in global market indices as a sign of increasing maturity.
“Over the last six years, the MSCI India Index has delivered a compound annual growth rate of around 9 percent, compared to about 6 percent for the MSCI Emerging Markets Index. While performance may vary across market phases, consistency over time shapes long-term allocation decisions,” he said.
Pandey added that regulatory changes have been made to expand participation in Alternative Investment Funds. The minimum investment threshold for Large Value Funds has been reduced from Rs 70 crore to Rs 25 crore for accredited investors, broadening the investor base.
He noted that the AIF ecosystem has grown significantly, from Rs 0.1 trillion in FY15 to about Rs 6.5 trillion by the end of December 2025, helping channel capital into startups, private credit, and emerging sectors.
Pandey also said that, effective Jan. 1, 2026, investments by mutual funds and specialized investment funds in real estate investment trusts and infrastructure investment trusts will be treated as equity-related investments. This move is expected to encourage broader participation and expand the scope of strategic investors, including pension funds and provident funds with sufficient capital.
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