India’s capital markets regulator, the Securities and Exchange Board of India, Chairman Tuhin Kanta Pandey, at an event organised by the Association of Mutual Funds in India (AMFI), said that he predicts a ‘vast’ potential for growth in the Indian mutual funds.
On the occasion of AMFI‘s Foundation Day 2025, Sebi Chief Pandey said that there is an opportunity to expand mutual fund penetration in the Indian market, which would unlock a higher number of investors, boost domestic savings, and foster investment in the nation.
“Vast headroom for growth before us, expanding the mutual fund penetration can unlock a far larger pool of domestic savings or productive investment,” said Pandey at the event.
Pandey also highlighted how the mutual fund industry has expanded over the last decade, with a rise from 1 crore investors in 2015 to nearly 5.6 crore at the current market.
He also gave an example of how a mutual fund systematic investment plan (SIP) is like a “seed plant in the soil of financial discipline. It does not grow into a tree overnight, but with patience and nurturing, it becomes a strong tree offering green shade, fruits, and security.”
Pandey also highlighted that the mutual fund industry should unite and bring small SIP plans to every home while stressing the need for increased vigilance against fraudulent redemptions, according to media reports on Friday.
The Sebi chief said that data privacy must remain the highest priority and that mutual funds are responsible for the actions of their vendors and third parties.
Regulated pre-IPO share trading
Mint reported earlier that Sebi chief Tuhin Kanta Pandey suggested exploring a regulated platform for pre-IPO share trading on Thursday.
“Can we think of an initiative on a pilot basis for a regulated venue where pre-IPO companies can choose to trade, subject to certain disclosures?” said Pandey, speaking at the capital markets conference hosted by industry body Ficci. He urged the intermediaries and stakeholders to weigh in on his idea.
While this was not a formal proposal, Pandey’s suggestion marks a shift in public discourse around capital market innovation, according to the news report, especially as Indian markets see a record pipeline of public listings and retail participation.
With India’s IPO market booming — ₹4.3 trillion was raised in FY25, and ₹1.4 trillion is expected to be mobilised in the coming months — Pandey said pre-listing information is often not enough for investors to make an informed decision.
