Fundraising from capital markets to climb 21%, hit ₹14.27 lakh crore in FY25: SEBI chief

Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch on Friday said that the total fundraising from capital markets, including through equity and debt instruments, is expected to jump nearly 21% year-over-year (YoY) in FY25, hitting ₹14.27 lakh crore, increasing from ₹11.8 lakh crore in FY24.

In the last nine months of the current financial year, entities have an investment of ₹3.3 lakh crore in equity and ₹7.3 lakh crore in debt markets, with overall mop-up reaching ₹10.7 lakh crore, she added.

"If we project for the next quarter (Q4), we will probably end up with somewhere like over ₹14 lakh crore raised for the year in terms of capital, both equity and debt," Buch said addressing a NISM-organised conference.

A presentation by Buch pegged the FY25 estimate at ₹14.27 lakh crore.

While the money raised by real estate investment trusts, infrastructure investment trusts and municipal bonds has a very small contribution to the overall capital raising at around ₹10,000 crore in the first nine months of FY25, Buch said that she anticipates growth in these segments over the next decade to even exceed the money raised from equity and debt markets.

SEBI, the capital markets regulator in India, is working towards expediting the time taken for clearing issuances, Buch said, adding that it is also committed to reducing the time taken for clearing small and medium enterprises (SME) board proposals.

Buch said a lot of attention is paid to IPOs and SEBI is "flooded" with new applications on the same, but added that other avenues including preferential issuances, institutional placements and rights issues are also important and may go unnoticed.

She said that SEBI has introduced a system for expediting rights issuances, and hoped that the industry adopts the same.

SEBI chief highlighted that the regulator has been granting clearances to new offers of mutual funds faster and said that systematic investment plans (SIP) with a minimum amount of ₹250 will be launched shortly.

She acknowledged the efforts made by domestic institutional investors in mobilising resources over the past few years, noting that these funds have been crucial during periods of market volatility, especially when foreign portfolio investors might pull back. She also pointed out that while SEBI often faces criticism for its swift actions on different fronts, she emphasised that such speed is essential to achieving the regulator’s developmental goals and ambitions.