Nearly a third of GenZ investors are now participating in the securities market.
Nearly a third of GenZ investors are now participating in the securities market, Sebi chief Tuhin Kanta Pandey said on Thursday, while lauding digital transformation and the strengthening of digital public infrastructure which he said have unlocked efficiencies and inclusion on an unprecedented scale.
Pandey, chairman of the Securities and Exchange Board of India , said that participation from GenZ -- those aged between 18 and 27 years -- is an encouraging sign of growing financial engagement at an early age
"This trend reflects not only the rising trust in formal financial systems but also signals a significant opportunity for long-term wealth creation and inclusive participation in the nation's economic progress," Pandey said.
Pandey was addressing the 16th Capital Market Conference by industry body Assocham in Delhi.
According to data from the depositories, the total number of demat accounts have surged to over 190 million as of April 2025, which was less than 50 million in December 2020.
NSE's Market Pulse report issued every month showed that the share of investors under 30 years has risen sharply from 22.9 per cent in March 2018 to 39.5 per cent in March 2025.
The report notes that the jump reflects rising financial literacy and easier access through digital platforms.
The combined share of investors aged 50 years and above has fallen from 25.8 per cent in Mar'18 to just 15.1 per cent on Mar'25, signalling a changing investment culture driven by younger, tech-savvy participants,' the report notes.
Apart from direct investments into the securities, the investments through mutual funds have also surged over the years, with the total number of folios reaching 234.5 million as of March 2025 compared to 178 million a year ago.
A report by the Association of Mutual Funds in India (Amfi) for FY25 said that 47 per cent of the net inflows from those under the age of 25 years was into equity schemes.
'Younger investors are more inclined to take on higher risks, as can be gauged from their significantly higher share of net flows in the equity segment,' the report noted.
'Digital transformation, the emergence of AI, and the strengthening of digital public infrastructure are unlocking efficiencies and inclusion on an unprecedented scale,' Pandey said in his address.
The Sebi chairman highlighted the surge in equity issuances as the financial year 2025 (FY25) recorded the highest ever fund raising through initial public offerings (IPOs) at Rs 1.7 trillion.
The market capitalisation of listed companies has risen to Rs 423 trillion as of April, compared to Rs 150 trillion in FY19.
The former bureaucrat noted that this reflected strong investor confidence and robust corporate performance.
'The Indian securities market is not merely a facilitator of financial transactions but a powerful engine of capital formation. Our capital markets have become an essential channel through which domestic savings and foreign investments are directed into productive economic activity. This is helping fuel innovation, entrepreneurship, job creation, and infrastructure development,' Pandey said during his address.
Pandey also brought focus on Sebi's measures to facilitate capital formation such as strengthening governance, reduction in listing timelines, and upstreaming of client funds to ensure safeguards of the funds.
While indicating towards regulator's focus towards optimum regulations, the Sebi chairman also highlighted steps taken to enhance participation in the debt segment.
The market regulator earlier this year announced several measures to enhance financial literacy amongst the young, including its flagship Tarun Yojana.
Under the scheme, a pilot project is being run across several districts to integrate financial literacy with school curriculum.
Feature Presentation: Aslam Hunani/Rediff
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