India's Gen Z Fuels Capital Market Boom: SEBI Chief Highlights

India's growing demographic dividend is offering a distinct opportunity for the expansion of its capital markets, stated Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey. Approximately one-third of India's Gen Z is actively participating in the securities market, showcasing early financial engagement.

During the 16th Capital Market Conference in New Delhi, Pandey emphasized that this trend not only inspires confidence in financial systems but also presents a substantial chance for long-term wealth growth and broader economic inclusion. He noted that market participation has nearly tripled since March 2019, highlighting increased retail investor confidence in India's financial landscape, with potential for further growth.

The past decade has seen the capital markets channel about Rs93 lakh crore into various sectors, supporting their development. Retail participation gets an additional boost from the mutual fund industry, with assets under management soaring from Rs.24 lakh crore in March 2019 to Rs.70 lakh crore by April 2025. SIP flows have witnessed consistent growth from less than Rs.1 lakh crore in FY19 to Rs.2.9 lakh crore in FY25.

Pandey also addressed inquiries regarding the anticipated IPO of the National Stock Exchange (NSE), suggesting that resolution on pending issues means regulatory approval could be forthcoming. Previously, SEBI had raised concerns about managerial compensation and technological ownership in connection with the NSE IPO.

(With inputs from agencies.)