Retail Investors Boost India's Market Stability

The surge of retail investors in India has bolstered market stability, with demat accounts surpassing 17 crore. SEBI's Ananth Narayan highlights the positive impact on capital formation and urges industry collaboration on risk reduction and efficiency at the Global Economic Policy Forum 2024.

Ananth Narayan G, a Whole-Time Member of the Securities and Exchange Board of India (SEBI), has emphasized the critical role of retail investors in sustaining India's capital formation cycle. Speaking at the Global Economic Policy Forum 2024, hosted by the Ministry of Finance and the Confederation of Indian Industry (CII), Narayan noted the stabilizing influence of retail investors on the financial markets.

In recent years, there has been a concerted effort to attract more individuals to participate in the financial ecosystem, resulting in an increase in retail investors nationwide. Data from key depositories such as National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) reveal that as of August 31, 2024, India's registered demat accounts have exceeded 17 crore, highlighting widespread confidence in the stock market.

With the low volatility in Indian markets, Narayan pointed out the growing interest from foreign investors. He also stressed the need for improving infrastructure efficiency, transparency, and risk management within the industry. He called for a collaborative approach to overcoming challenges, including asset valuation, while participating in SEBI's advisory consultations on regulatory matters.

(With inputs from agencies.)