SDG 9: Industry, Innovation, and Infrastructure | SDG 16: Peace, Justice and Strong Institutions
Institutions: Securities and Exchange Board of India (SEBI) | Ministry of Finance
The address by the Chairman of SEBI, Tuhin Kanta Pandey, focused on achieving “Financial Empowerment Through Awareness” by addressing the new landscape of digital risks while highlighting the monumental growth of India’s securities market. India is experiencing a significant rise in participation, with unique investors growing from less than 4 crore in FY19 to nearly 13.6 crore by October 2025. This growth is paralleled by surging investment flows: the number of mutual fund investors has grown to over 5.6 crore, and monthly SIP flows have dramatically increased from ₹3,000 crore in 2016 to over ₹29,000 crore today.
The speech acknowledged the strong contribution of regions like Tamil Nadu, which is the second-largest state contributor to India’s GDP and has the highest number of factories in the country. Tamil Nadu also ranks 5th in individual investor participation in the cash segment, with its unique investor count rising over five-fold from 13 lakh in FY15 to over 68 lakh today.
Despite this growth, the Chairman emphasized that participation must be evaluated alongside risk preparedness. While 63% of households are aware of securities market products, only 9.5% invest, demonstrating a significant challenge in translating awareness into trust. This challenge is amplified in the digital age where misinformation, fraudulent trading apps, and unregistered advisory groups are constantly trying to exploit investor trust and aspirations.
SEBI has responded with a robust, two-pronged strategy:
Digital Protection: New tools include the validated UPI handle framework and SEBI Check feature to verify the authenticity of intermediaries and bank accounts. Investors can now voluntarily freeze or block their trading accounts—like blocking a compromised debit card—for immediate safety.
Structural Safety: Secure systems are mandatory, such as direct payout mechanisms to credit funds and securities directly to investors’ accounts. The introduction of trading supported by blocked amounts (like the ASBA process in the secondary market) minimizes the risk of fund diversion. Power of Attorney arrangements have been replaced with the more secure Demat Debit Pledge Instruction framework.
The Application Supported by Blocked Amount (ASBA) process, traditionally used in IPOs (primary market), has been adapted for the secondary market. This mechanism ensures that funds required for a trade are blocked in the investor’s bank account but remain in the account until the trade is executed and settled. By preventing the transfer of funds to intermediaries before settlement, this process significantly minimizes the risk of fund misuse or diversion by brokers, structurally protecting the client’s capital.
Policy Relevance
The speech underscores SEBI’s strategic alignment of financial inclusion with investor protection. The comprehensive rollout of digital safety tools, stringent prohibitions on unregulated advisors, and systemic reforms like the ASBA process in the secondary market are essential to protect the confidence of the 13.6 crore unique investors. The continued push for education through multilingual, regional programs like SEBI Arth Yatra Contest and campaigns like “Aapki Poongji, Aapka Adhikar” is vital to bridging the urban-rural participation gap (15% vs. 6%) and channeling greater household savings into productive investment.
Relevant Question for Policy Stakeholders: How will SEBI effectively leverage its new digital tools and educational campaigns to reach the 94% of India’s rural population who remain outside the formal securities market?
Follow the full news here: Financial Empowerment Through Awareness - Building Confidence in India’s Investing Journey