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SEBI Chief: Banks, Capital Markets Must Collaborate to Fuel India's Growth
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Moneycontrol•23-09-2026, 20:10
SEBI Chief: Banks, Capital Markets Must Collaborate to Fuel India's Growth
- •SEBI Chairman Tuhin Kanta Pandey emphasized the need for banks and capital markets to work together, not compete, to fund India's expanding economy.
- •Pandey highlighted that India's diverse financing requirements necessitate different forms and durations of capital for various sectors, from debt for some businesses to risk capital for others, and patient, long-duration capital for infrastructure.
- •He stated that the question is not whether banks or markets should finance India's growth, but that both are essential and need to be strong to support infrastructure, manufacturing, urbanization, energy transition, and both traditional and technology-driven enterprises.
- •Indian companies have raised approximately Rs 10 trillion annually through equity and debt issuances over the last decade, with market capitalization growing at 17% CAGR since FY16 to Rs 481 trillion, and mutual fund AUM rising from Rs 12.3 trillion to Rs 87 trillion by August 2026.
- •Pandey noted the corporate bond market's crucial role as a bridge between banks and capital markets, with outstanding corporate bonds reaching Rs 61 trillion, and SEBI's focus on making this market more accessible, efficient, and liquid.
Key Questions Answered
SEBI Chairman Tuhin Kanta Pandey stated that India's expanding economy requires banks and capital markets to play complementary rather than competing roles to fund diverse growth requirements effectively.
As of August 2026, outstanding corporate bonds reached around Rs 61 trillion, which is equivalent to about 55 percent of outstanding bank credit to industry and services.
Mutual fund assets under management rose significantly from around Rs 12.3 trillion in FY16 to approximately Rs 87 trillion by August 2026.
